MIDC resumes recovery of pending GST dues from 3,000 industrial units

Lokmat News Network

Chhatrapati Sambhajinagar

The Maharashtra Industrial Development Corporation (MIDC) has restarted its drive to recover pending GST dues from nearly 3,000 industrial units in Chhatrapati Sambhajinagar. The dues pertain to services rendered between July 2017 and January 2022 a period during which MIDC failed to levy the mandatory Goods and Services Tax (GST).

The lapse came to light after a GST vigilance audit flagged the irregularity. In June 2023, MIDC’s regional office issued notices asking units to pay GST with interest. However, strong opposition from industrial associations who argued that the fault lay with MIDC, not them led to a temporary halt in the recovery process. Now, the corporation has resumed collection. According to sources, industrialists visiting MIDC offices for regular work are being asked to first clear their outstanding GST dues. The GST Act, effective from July 1, 2017, makes GST collection mandatory on all services. Despite this, MIDC failed to apply GST on several services for over five years. Regional officer Amit Bhamre confirmed to Lokmat Times that recovery is underway in accordance with legal provisions.

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GST now applicable on the following MIDC services:

• New water and drainage connections

• Occupancy certificate issuance

• Water usage charges

• Plot transfers and subletting approvals

• Change-of-land-use permissions