The Chamber of Small Industry Associations (COSIA) recently engaged in a discussion with Shri K. R. Uday Bhaskar, Principal Chief Commissioner of CGST & Central Excise, Mumbai Zone, to address critical GST-related concerns affecting MSMEs and industries. The meeting, held on 21st March 2025, was led by COSIA President Mr. Sandeep Parikh, along with representatives including CA Nandan Khambete and Adv. Sanjay Dwivedi.
The key issues raised during the discussion included:
- GST on Assignment of SIDC (MIDC) Lease – COSIA emphasized that such transactions do not qualify as a service and should not be subject to GST. The Gujarat High Court has ruled in favor of this interpretation, and the organization urged CGST authorities to ensure pending adjudications align with this ruling.
- Representation to GST Council & Finance Ministry – COSIA requested further advocacy on this issue at the policy level to prevent unnecessary taxation burdens on industries.
- Formation of CGST Grievance Redressal Committee – The organization highlighted the need for a dedicated industry grievance cell and sought representation to ensure industry concerns are effectively addressed.
- Transparency in CGST Communication – Concerns were raised regarding the absence of official email IDs of officers on government websites and the use of unofficial IDs for correspondence. COSIA recommended that official contact details be made publicly available to facilitate smooth communication.
- Online Hearing Option for Show Cause Notices – It was pointed out that many SCNs currently do not provide an online hearing option, compelling taxpayers to opt for physical hearings. COSIA advocated for mandatory inclusion of online hearing options in all notices for ease of compliance.
- Prevention of Unauthorized Sale of GST Data – Concerns were raised about potential misuse of taxpayer data within the GST system. COSIA urged the implementation of stricter access controls and monitoring mechanisms to prevent data leaks.
- Clarity on E-Invoice and Transportation Compliance – COSIA highlighted inconsistencies in the GST portal’s messaging about the timeline for e-invoice generation, which could lead to unintentional non-compliance and the detention of goods.
- Direct Communication for GST Notices – To ensure business owners are informed, COSIA proposed that all critical GST notices be sent to both the registered email ID and the direct emails of company directors or owners.
- Acknowledgment of Taxpayer Communications – The absence of formal acknowledgments for taxpayer submissions was highlighted. COSIA suggested the implementation of an official tracking system for queries and clarifications.
- Jurisdictional Overreach in Refund Cases – Instances where approved refunds were later challenged through separate inquiries were flagged, creating unnecessary legal hurdles for businesses. COSIA urged for procedural clarity to prevent such duplications.
- Clarification on ITC Claims for Imports – Section 16(2)(aa) of the CGST Act raises doubts about ITC claims for GST paid on imports. COSIA sought a clear directive that customs documents alone should suffice for ITC claims, avoiding unnecessary complications.
COSIA remains committed to advocating for MSMEs and ensuring that the GST framework remains fair and transparent. The organization appreciates the proactive engagement of CGST authorities and will continue to follow up on these critical matters.
