Coimbatore industrial bodies allege 10% bribe demand for SGST penalty refunds, seek CM Vijay’s intervention

Coimbatore: Industrial associations in Coimbatore have demanded immediate release of pending refunds to micro and small enterprises without penalties or bribery.

They alleged that commercial taxes department officials are seeking a 10% “commission” via auditors to clear long-pending SGST penalty refunds.

The associations urged authorities to act against the alleged practice and ensure refunds are processed transparently.

Federation of Coimbatore Industrial Associations (FOCIA) coordinator J James said over the past two days, applicants who had sought refunds of refundable SGST penalty amounts pending for long periods were being called in and allegedly asked to pay 10% as bribe via their auditors, with assurances that the pending files would be cleared immediately upon payment.

He said entrepreneurs who had paid penalties despite no wrongdoing were forced to wait for years for refunds, and the alleged demand for a further 10% was adding to the burden on small businesses.

He urged chief minister Joseph Vijay to intervene and ensure refunds are issued without enabling bribery expectations and without imposing any additional penalty. He alleged that officials warn applicants that questioning the process could lead to penalties under other sections.

He flagged that during goods movement checks through patrol vehicles, even minor billing errors or a single-word mistake could result in on-the-spot penalties of up to 200%, which are later refundable after submission of documents.

With refunds already delayed for up to a year in many cases, the alleged bribe demand to release pending amounts is pushing small entrepreneurs into stress, he said, calling on the state govt to ensure that the refund order issued after the new govt assumed office reaches beneficiaries in full.