Allegations of bribery in the GST registration process prompt Finance Minister Sitharaman's reaction; CBIC provides explanation on the issue.
Businessman's Allegations of Bribe Solicitation in GST Registration Process Sparks Public Outcry
Vinod Gupta, an entrepreneur seeking to expand his business, has publicly expressed his dismay over delays in obtaining his Goods and Services Tax (GST) registration and his willingness to pay a bribe to expedite the process. His social media post went viral, prompting calls for action and responses from both the Finance Minister and the Central Board of Indirect Taxes and Customs (CBIC).
Gupta claimed that he had submitted his GST registration application around 20 days prior but had yet to receive his registration number. Struggling with thedelay, he mentioned in his post that he may consider offering a bribe to speed up the process.
The issue has resurfaced concerns about corruption in the tax regime, with some alleging that the system intended to streamline business processes may instead be creating new obstacles. One user, moved by Gupta’s predicament, voiced these concerns:
"The early days of GST offered a smooth process, but it has now turned into a nightmare. Officers, familiar with the system, are reportedly exploiting it, deliberately delaying or rejecting registrations unless bribes are paid. This is a serious blow to the promise of ease of doing business. Entrepreneurs deserve a fair system, not one that forces them to pay their way in."
In response to the uproar, Finance Minister Nirmala Sitharaman emphasized the importance of integrity and transparency in tax administration. She reiterated that providing services to taxpayers is their duty, and both transparency and integrity are vital in maintaining the public's trust and confidence.
Shortly after, the CBIC issued a detailed clarification on Gupta's specific case. The board stated that Gupta's application was submitted on May 26 and under the jurisdiction of Delhi State GST, not Central GST. The CBIC explained that an inquiry was initiated due to incomplete documentation, specifically, a missing designation on the rent agreement, and the applicant had yet to respond to this query. The board reiterated that the application was being processed promptly and that the situation should not be generalized to the entire GST registration system.
The CBIC and the Finance Minister's statements suggested a response to the allegations by addressing specific cases, affirming their commitment to integrity, and encouraging prompt service delivery, acknowledging that some delays may stem from incomplete documentation instead of systemic corruption.
The allegations of a businessman, Vinod Gupta, suggesting bribe solicitation in the GST registration process has raised concerns about corruption within the tax regime, with some claiming that the system is creating new obstacles. The Finance Minister, Nirmala Sitharaman, emphasized the importance of maintaining integrity and transparency in tax administration while responding to the uproar. The Central Board of Indirect Taxes and Customs (CBIC) clarified that Gupta's application was delayed due to incomplete documentation, not systemic corruption, and assured prompt service delivery to reestablish trust and confidence in the system.
