Nagpur: The Maharashtra Industrial Development Corporation (MIDC) has issued Goods and Services Tax (GST) recovery notices to various units within its estates across the state. These notices pertain to dues that the agency reportedly failed to collect for nearly nine years. The unexpected demand for payment has caused significant frustration among the affected businesses, which are now grappling with the financial implications of this retroactive enforcement.
As per CAMIT, from 2017 to 2022, MIDC did not add the tax component to the charges for its own administrative reasons. Because an indirect tax like GST can be passed on to the end-user, in the normal course, the tax component is added to the service charges levied on the industries,. You Can Also Check: Gold Rate in Nagpur | Silver Rate in Nagpur | Bank Holidays in Nagpur | Public Holidays in Nagpur | Petrol Price in Nagpur | Diesel Price in Nagpur | CNG Price in Nagpur | LPG Price in Nagpur Stay updated with the latest Nagpur news.
“An audit query by GST department later led to a recovery of Rs 700 crore, which further swelled to Rs 1,300 crore after adding penal interest,” the chairperson of CAMIT, Dipen Agrawal, told TOI. This comes as an out-of-the-blue action for industries,” Agrawal told TOI. He added that since GST would be paid for a time-barred period, “the industries cannot even get input tax credit (ITC) on the payments”. The CAMIT representation to Fadnavis says an “administrative delay on part of a statutory govt authority has effectively converted what should have been a tax-neutral transaction into an irreversible additional financial burden.
The industrialists approached chief minister Devendra Fadnavis through Chamber of Associations of Maharashtra Industry and Trade (CAMIT) seeking a reversal of the decision after the notices were served over the last fortnight. MIDC undertakes a slew of activities like water supply and roads, as well as providing other amenities to units in its estates like Butibori or Hingna. These are counted as services provided, and are subject to GST. “Now, MIDC wants the industries to pay up the tax which it didn’t charge at the relevant time. ITC is a mechanism which sets off GST paid for availing of services or inputs on the sale of end products. Download the TOI App.