Now, Mandi Gobindgarh scrap traders warn govt of shutdown over GST raids

After the furnace industry, scrap and recycling traders of Punjab’s steel town Mandi Gobindgarh have also warned the Punjab Government of a possible shutdown, alleging that frequent GST raids, notices and an “opaque” tax system are crippling legitimate businesses.

The Iron Scrap Traders Welfare Association, at a meeting chaired by Amandeep Sharma and presided over by Satnam Chawla on Saturday, expressed resentment over GST enforcement and demanded a transparent and trader-friendly tax regime.

The traders said they fully supported strict action against tax evaders, but alleged that genuine traders were being issued repeated notices, their vehicles were checked frequently and late-night inspections were conducted on their premises even as they maintained complete documentation, including e-way bills and e-invoices.

They further alleged that buyers were being unfairly penalised if suppliers failed to deposit GST or disappear after transactions, even as they believed that verification of tax compliance was the government responsibility.

Referring to the recent warning issued by the Furnace Association over midnight inspections, the scrap traders said the continued enforcement drive created panic across the steel industry and disrupted normal business. They claimed that 20%-25% of the town’s recycling industry had already been affected.

They warned that the entire recycling trade would be forced to suspend business if the government failed to simplify the tax system, end unnecessary harassment and take effective steps to curb organised tax evasion while protecting honest taxpayers.