MSMEs In Daman and DNH Urge Jurisdiction Change from GSTAT Mumbai to Surat
The issue arose following the notification by GSTAT Mumbai regarding its jurisdiction over the Union Territory of DNH, Daman, and Diu. Taxpayers and professionals have voiced their concerns, citing the considerable distance between Daman and Dadra & Nagar Haveli and the GSTAT Mumbai office compared to the GSTAT Surat Area Bench.
Daman : Over 17,000 Micro, Small, and Medium Enterprises (MSMEs), suppliers of services, and tax practitioners in the Union Territory of Daman, Dadra, and Nagar Haveli (DNH) and Diu have united in their appeal for a change in jurisdiction from the Goods and Services Tax Appellate Tribunal (GSTAT) Mumbai to the GSTAT Surat Area Bench. This plea stems from concerns about the convenience of taxpayers and practitioners in the region.
The issue arose following the notification by GSTAT Mumbai regarding its jurisdiction over the Union Territory of DNH, Daman, and Diu. Taxpayers and professionals have voiced their concerns, citing the considerable distance between Daman and Dadra & Nagar Haveli and the GSTAT Mumbai office compared to the GSTAT Surat Area Bench. They fear that these geographic disparities could lead to difficulties in appeal proceedings, particularly for the Union Territory’s taxpayers and practitioners.
In their appeal, the MSME taxpayers and tax professionals underscored the substantial savings in terms of man-hours, expenses, and resources that would result from a change in jurisdiction to the GSTAT Surat Area Bench.
Opponents of the GSTAT Mumbai notification argue that the GSTAT Surat Area Bench would be more suitable for Daman Commissionerate, given its proximity. They highlight that the GSTAT Ahmedabad already covers the entire Gujarat State and that a GSTAT Area Bench is already operational in Surat.
The GST Vadodara Zone encompasses Central GST Commissionerates of Vadodara-I, Vadodara-II, Surat, and Daman, as well as Surat and Vadodara Audit and Commissionerates of Central Tax (Appeals) in Surat and Vadodara. However, the jurisdiction for Daman Commissionerate currently falls under the Vadodara Zone.
A spokesperson from a prominent plastic company, which is one of the many supporting the appeal, stated, “Big textile and chemical companies have their head offices in Mumbai, so they are comfortable with the GSTAT Mumbai Area Bench. However, there are thousands of small taxpayers—MSMEs and SMEs—based in the Union Territory of Daman and DNH. Thus, we have urged the GSTAT to change the area from Mumbai to Surat.”
“The appeal to shift the GSTAT jurisdiction from Mumbai to Surat aims to ensure that the tax system is more accessible and convenient for the numerous small and medium-sized businesses operating in the region” said another tax payer in Daman.