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GIDC units to challenge imposition of GST on plot transfers in High Court

Updated: May 29, 2023 01:59:06pm
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GIDC units to challenge imposition of GST on plot transfers in High Court

Ahmedabad, May 29 (KNN) Units in the Gujarat Industrial Development Corporation (GIDC) estates have decided to appeal the high court opposing the levy of goods and services tax (GST) on transfer of GIDC plots.

As per chartered accountants, there are cases where MSMEs have a higher GST liability than their profits because they transferred the plots to other companies in a short time due to the business being unviable, reported TOI.

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Some industry associations are considering to file petition in the high court against the GST department as it is charging GST on GIDC land transfer but not allowing input tax credit (ITC) against it.

Highlighting the concern, the Gujarat Chamber of Commerce and Industry (GCCI) has written to Gujarat Chief Minister Bhupendra Patel and Union Finance Minister Nirmala Sitharaman.

GCCI has mentioned that GIDC plots are leasehold land and should not be considered as goods or services subject to GST.

Ajit Shah, chairman of the GIDC committee of GCCI, said, “Notices have been issued since 2017-18, and there are cases where sellers and buyers are not in contact or disputes exist between them over retrospective GST liability with penalties and interest. Many MSMEs have received notices for tax on the consideration received for assignment of leasehold land, which is improper.”

The GST department is reportedly collecting information on GIDC plot transfers from GIDC, and several companies have received GST notices for tax imposition on the consideration received for the assignment of leasehold land.  (KNN Bureau)

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