COSIA asks for GST review on land lease transactions impacting MSMEs

Mumbai, Feb 10 (KNN) The government must consider to revisit the issue pertaining to GST on leased land affecting MSMEs across India, Chamber of Small Industries Association (COSIA) said on Thursday.

The MSME apex body said that the GST department has put the industry in a state of fear by sending summons and has started an investigation into how many transfers of leased lands have taken place in MIDC (Maharashtra Industrial Development Corporation) area since July 2017.

COSIA President Sandeep Parekh pointed out that the department seems to be taking a stand after 5 years that on transfer of leased land from one party to the other comes under the purview of supply of service and hence 18 per cent is taxable on the transaction, though MIDC is exempt.

“If this really goes through then it will sound a death knell for all the MSMEs that have sold their plots since July 2017 and also future transactions,” he warned.

It has also taken up taken up this issue with union finance minister Nirmala Sitharaman and the GST council.

COSIA has urged the Maharashtra deputy chief minister Devendra Fadnavis, who is the state finance minister, to take up the issue with the GST council.  (KNN Bureau)