Thousands of Coimbatore MSMEs get Rs 1.5 lakh fine for delay in tax returns, GST numbers blocked

COIMBATORE: GST numbers of several MSMEs in the district have been blocked for over a week after they allegedly delayed remitting tax and filing returns. They also got a penalty of Rs 1.5 lakh each. MSMEs urged the central government to intervene in the issue.

Along with the raw materials price hike, the new move has affected many units' operators, they alleged.  
J James, president of Tamil Nadu Association of Cottage and Tiny Enterprises (TACT), said, "Notices have been issued to more than a thousand MSME units from GST by central excise office to pay interest for delay in paying tax returns from July 2017 to March 2021. No units were alerted about the information since the implementation of GST. Operators were unaware of penalising interest of 18% by the office. Now each unit has been slapped a minimum of Rs 1.5 lakh as a penalty."

He said that many MSME units' GST numbers have been blocked for not paying returns.

"Demonetization, GST implementation and Covid -19 spread have weakened the MSME units. With the recent raw material price hike, many units collapsed. Meanwhile, slapping of interest on GST returns for four years of the period has shocked MSME operators. All of us are not in a condition to pay the huge amount," he added.

M Ganesh Anand, a pump set and valve manufacturing MSME unit operator from Chinnavedampatti, said, "I have been served a notice on April 7 asking to pay the interest of ` 1.85 lakh in one instalment. Our unit's GST number has been locked citing the delay. My unit operation has been stalled almost."
He urged the central government to at least provide some time to pay interest instead of blocking GST numbers as their business is entirely affected.