GST network glitch hits companies trying to retrieve identification number

Picture used for representational purposes only. File

Picture used for representational purposes only. File | Photo Credit: The Hindu Photo Library

A Bengaluru-based defence manufacturing company whose GST Identification number has been blocked for non-payment of GST on time has been running around to get the suspension revoked, as a technical glitch in GST Network is coming in the way of its retrieval.

Commercial Tax Department sources say that the technical glitch has hit seven other companies for similar reasons.

While the GSTIN of ADD Engineering Components India Ltd. was suspended in March 2021 for non-payment of GST, it is yet to be revoked even after the company paid ₹17.5 lakh GST and a penalty of ₹2.5 lakh for not paying GST by December, 2021.

The ADD Engineering Components supplies components to Indian defence programmes such as Brahmos project, Light Combat Aircraft (LCA) Tejas and helicopters produced in HAL. It is also a supplier to Bharath Dynamics Ltd. and some ordnance factories in the country.

On hold

“I have orders and am unable to execute them since I am unable to generate an e-way bill. I cannot send material to the companies nor can I claim refund on purchases. The pressure from banks to pay EMI is also building up,” company director Girish L. told The Hindu. “Efforts to cancel the suspension since February this year have not helped so far and Commercial Tax officials are not sure when the glitch will be set right.”

The trouble, he said, began after he failed to pay the GST due to COVID-19-induced restrictions when businesses were closed. The department, meanwhile, issued show cause notices for non payment of GST. “While in March 2021, my 15-digit GSTIN was suspended owing to non payment of GST, I have paid it with dues in December 2021 after my financial situation eased. However, my GSTIN has not been restored yet. ”

In March 2022, the Joint Commissioner of Commercial Taxes (Appeals 2) directed the Commercial Tax Department to restore the GSTIN. Meanwhile, his tweets seeking a solution to his problems to Chief Minister Basavaraj Bommai, Industries Minister Murugesh Nirani and Union Finance Minister Nirmala Seetharaman have also not helped.

First-time problem

A senior Commercial Tax official in the GST cell acknowledged the technical glitch in restoring the GSTN. “We are working on the situation and there are technical issues. The issue has been flagged to the GSTN. This the first time that such a problem has cropped up. There are seven other cases similar to this. Once the glitch is overcome, all the cases can be solved.” The official said that the issue has also reached the GST Council, and it is being rectified. “We are aware of his business pressures but we also need some time to set things right.”

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jun 23, 2022 10:03:26 pm | https://www.thehindu.com/news/national/karnataka/gst-network-glitch-hits-companies-trying-to-retrieve-identification-number/article65423793.ece