Maharashtra Industries in Dispute with MIDC Over GST Bills: Associations Consider Legal Action
The Maharashtra State Industrial Development Corporation (MIDC) has served notices to industries within its jurisdiction, demanding payment of Goods and Services Tax (GST) for the past six years, accompanied by interest and penalties on as many as 80 services. Faced with this hefty financial burden, industry associations in the state have united in their decision to withhold payments, except water bills, and are now considering legal action against the MIDC.
During an online meeting held on Monday, attended by approximately 50 to 60 office bearers of various industry associations, a unanimous resolution was passed to challenge the GST bills imposed by MIDC. Each entrepreneur has been instructed to submit a letter to the executive engineer of MIDC, explicitly requesting the separation of water bills from the charges levied by the corporation. The industry representatives argue that they will only pay the water bill portion, refusing to bear the additional charges imposed by MIDC. Nitin Lonkar, President of the Butibori Manufacturing Industries Association, emphasized that the GST bills, combined with the associated fines, amount to billions of rupees.
In May, entrepreneurs across the state received GST bills for 80 services, covering six years, accompanied by penalties ranging from one lakh to fifteen lakhs. This billing exercise affected millions of companies operating in the 289 MIDCs throughout Maharashtra, resulting in a substantial cumulative sum of GST and penalty charges.
Lonkar expressed his belief that the decision to issue these GST bills was a deliberate attempt by MIDC to stifle the industrial sector in the state. In response, the collective industrial associations are preparing to hold meetings with the Chief Minister, Deputy Chief Minister, Industry Minister, and CEO of MIDC, urgently seeking a resolution to the GST dispute. Should a satisfactory response not be received, the associations are fully prepared to pursue legal recourse through the court system.
The matter of unpaid GST bills and the subsequent standoff between the industries and MIDC has generated significant concern within the business community. It remains to be seen how the authorities will respond to the demands of the industry associations and whether a mutually agreeable solution can be reached to alleviate the financial burden faced by the affected businesses in Maharashtra.
-t-thumb.jpeg)
-t-thumb.jpeg)
-t-thumb.jpeg)
-t-thumb.jpeg)