Maharashtra Industrial Development Corporation Faces Opposition Over GST Recovery from MIDC Consumers
Responding to the demands of industrial category consumers in MIDC areas across the state, the Maharashtra Industrial Development Corporation (MIDC) has issued fresh demand notes for water charges without including the Goods and Services Tax (GST) component. However, plot owners in various MIDC areas have announced their refusal to pay the charges along with the pending tax, opposing MIDC's attempt to recover the GST from them.
MIDC had issued a demand note for water charges along with the pending tax amount from July 2017 in an effort to recover the tax. The corporation aimed to collect GST charges from consumers starting July 1, 2017, the day the new tax regime was introduced. However, MIDC has been unsuccessful in collecting GST charges for the services it provides to industrial units, including water charges, fire charges, drainage charges, and plot transfers.
The sudden decision by MIDC officials to make consumers pay the pending GST, along with interest and penalties, has met with strong opposition. Nitin Lonkar, President of the Butibori Manufacturers' Association, expressed relief at the temporary solution but emphasized the need for the MIDC to withdraw the motion to collect pending tax. Lonkar called on the government to intervene and abolish the recovery effort, questioning how MIDC can demand GST payments after such a long period. A delegation representing entrepreneurs' bodies across the state plans to meet the Maharashtra Minister of Industries, Uday Samant, to discuss the matter further.
Consumers argue that they are not at fault and should not be compelled to pay the tax. Many received bills with additional amounts ranging from Rs 1,000 to Rs 1 lakh, depending on the size of their units. The opposition to the recovery drive highlights the consumers' dissatisfaction and their plea for a fair resolution to the issue.
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