Pune: Entrepreneurs in the Pimpri area have been left frustrated after receiving notices from the Maharashtra Industrial Development Corporation (MIDC), demanding unpaid GST amounts for the period from 2017 to 2023.
This unexpected notice has sparked outrage, as entrepreneurs argue that the tax amounts should have been collected annually, but were neglected by MIDC for seven years.
Now, MIDC is demanding these overdue payments along with penalties, creating a significant financial burden for the business community.
MIDC, which is responsible for providing services such as water supply, NOCs, plot transfers, and other infrastructure services, failed to include GST in its billing from 2017 onward. As a result, entrepreneurs only paid the base amounts for these services at the time.
Now, with the notices in hand, they are being asked to pay not only the GST for the past seven years but also late penalties for the delay, which entrepreneurs say is not their fault.
The business community is angry over this sudden demand, stating that it is unfair to hold them accountable for a mistake made by MIDC.
Many entrepreneurs have refused to pay the outstanding amounts, highlighting the potential financial strain that penalties for such a large backlog of taxes will create.
According to business owners, the error lies with MIDC for not issuing these bills in a timely manner, and they believe that MIDC should either pay the amount itself or waive the charges.
In addition to the original GST amount, the notices also indicate that there will be no GST refunds for amounts paid after the seven-year delay, which has further escalated tensions.
Usually, GST refunds are processed within a month, but since the delay is so significant, entrepreneurs are concerned they will miss out on these benefits entirely.
Many are asking why they should be forced to pay these overdue amounts and fines when it was the responsibility of MIDC to include them in their annual billing.
Entrepreneurs have also pointed out that unpaid GST was initially included in water supply bills, with threats of water disconnection if the amounts weren’t settled.
This led to a major outcry from local businesses, who then approached Industry Minister Uday Samant in Mumbai to seek relief.
After hearing their concerns, the minister instructed that the decision be postponed, and businesses have stated that they will not pay the increased GST charges that were added to their water bills.
Despite this temporary reprieve, entrepreneurs are still worried that MIDC might eventually enforce the payment of these backdated GST amounts along with penalties. Those who have already paid are now demanding refunds.
Entrepreneurs’ Associations Speak Out
Business associations have been vocal in their opposition to the notice. Sandeep Belsare, president of the Pimpri-Chinchwad Small Industries Association, remarked, “Many entrepreneurs have received notices for unpaid GST from 2017 to 2023.
This tax should have been collected annually, but MIDC failed to do so. They should bear the cost of their mistake, or the charges should be waived.”
Abhay Bhor, president of the Forum of Small Scale Industries, added, “Entrepreneurs are being burdened by multiple taxes, and these sudden notices are causing further financial distress. This practice must stop, as it is hurting businesses.”
