Faced with complaints of overcharging under the GST regime, the Tamil Nadu government today warned erring businesses of stern action, as it set up a complaint cell to address the grievances.
"If anybody charges levies beyond GST, stern action will be taken against them," Finance Minister D Jayakumar told reporters here in reply to questions about alleged instances of overcharging in taxes post-GST.
Action will also be taken if additional rates were charged for commodities exempted from the GST, he said, as the state government quickly stepped in to tackle the teething troubles encountered in the historic tax reform.
The minister's warning came amid complaints that some establishments, especially eateries, in different parts of the state were charging higher tax under the garb of the Goods and Services Tax(GST), which came into force from July 1.
"A complaint cell has been formed with state Commercial Taxes department for this purpose and people can inform the government on any GST related issues in this regard," he said.
Jayakumar also sought people's cooperation to tide over any such problems.
In reply to a query on the strike by Tamil Nadu Theatre Owners' Association that has led to the closure of over 1,000 cinema halls all over the state, he said discussions were being held to sort out the issue.
According to Tamil Nadu Theatre Owners and Distributors Association President Abhirami Ramanathan, the tax of 30 per cent was in addition to the GST Tax rates and that theatres had been shut due to their inability to pay the higher taxes.
He said the association was awaiting a response from the state government.
Under the GST, a tax rate of 18 per cent has been fixed for tickets priced below Rs 100 and 28 per cent for those above it.
It may be recalled that senior Congress leader P Chidambaram had criticised the GST in its present form saying it has many "defects" and that its implications will be known only in "due course."
DMK working president M K Stalin had said his party has been maintaining that traders should be given time to switch over to GST and talks must be held with them.
Based on their feedback, appropriate steps should be taken by the government and "whatever needs to be done should be done and we will welcome it," he said.
Meanwhile, the fireworks industry in Virudhunagar district, the national hub, remained shut for the third day today, protesting the levy of 28 per cent GST on their products.
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