¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

L. A. BILL No. XXX OF 2024.

A BILL

further to amend the Maharashtra Goods and Services Tax Act, 2017.

WHEREAS both Houses of the State Legislature were not in session;

AND WHEREAS the Governor of Maharashtra was satisfied that

circumstances existed which rendered it necessary for him to take immediate

action further to amend the Maharashtra Goods and Services Tax Act, 2017,

for the purposes hereinafter appearing ; and, therefore, promulgated the

Maharashtra Goods and Services Tax (Amendment) Ordinance, 2024, on the

7th October 2024 ;

Mah.

XLIII of

2017.

Mah.

Ord. IX

of 2024.

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+ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö

´É¹ÉÇ 10, +ÆEò 32]

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+ºÉÉvÉÉ®úhÉ Gò¨ÉÉÆEò 91

|ÉÉÊvÉEÞòiÉ |ÉEòÉ¶ÉxÉ

¨É½þÉ®úÉ¹]Åõ Ê´ÉvÉÉxÉ¨ÉÆb÷³ýÉSÉä +ÊvÉÊxÉªÉ¨É ´É ®úÉVªÉ{ÉÉ±ÉÉÆxÉÒ |ÉJªÉÉÊ{ÉiÉ Eäò±Éä±Éä +vªÉÉnäù¶É ´É Eäò±Éä±Éä Ê´ÉÊxÉªÉ¨É +ÉÊhÉ Ê´ÉÊvÉ ´É xªÉÉªÉ

Ê´É¦ÉÉMÉÉEòbÚ÷xÉ +É±Éä±ÉÒ Ê´ÉvÉäªÉEäò (<ÆOÉVÉÒ +xÉÖ´ÉÉnù).

In pursuance of clause (3) of Article 348 of the Constitution of India, the following

translation in English of the Maharashtra Goods and Services Tex (Amendment) Bill, 2024

(L. A. Bill No. XXX of 2024), introduced in the Maharashtra Legislative Assembly on the

17^th December 2024, is hereby published under the authority of the Governor.

By order and in the name of the

Governor of Maharashtra,

SATISH WAGHOLE,

Secretary (Legislation)

to Government,

Law and Judiciary Department.

RNI No. MAHENG/2009/35528

¦ÉÉMÉ +É`ö-91----1.

BSÉ¤ÉÒ-2148-1.

(1)

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

AND WHEREAS, it is expedient to replace the said Ordinance by an

Act of the State Legislature ; it is hereby enacted in the Seventy-fifth Year of

the Republic of India as follows :—

(1) This Act may be called the Maharashtra Goods and Services Tax

(Amendment) Act, 2024.

(2) Section 1 shall be deemed to have come into force on the 7th October

2024.

(3) Save as otherwise provided, remaining sections shall come into force

on such date, with prospective or retrospective effect, as the Government

may, by notification in the Official Gazette, appoint and different dates may

be appointed for different provisions of this Act and any reference in any

such provision to the commencement of this Act shall be construed as a

reference to the coming into force of that provision.

In section 2 of the Maharashtra Goods and Services Tax Act, 2017

(hereinafter referred to as "the principal Act”), for clause (61), the following

clause shall be substituted, namely :—

“(61) “Input Service Distributor” means an office of the supplier of

goods or services or both which receives tax invoices towards the receipt

of input services, including invoices in respect of services liable to tax

under sub-section (3) or sub-section (4) of section 9, for or on behalf of

distinct persons referred to in section 25, and liable to distribute the

input tax credit in respect of such invoices in the manner provided in

section 20 ;”.

In section 9 of the principal Act, in sub-section (1), after the words

“alcoholic liquor for human consumption”, the words “and un-denatured extra

neutral alcohol or rectified spirit used for manufacture of alcoholic liquor,

for human consumption” shall be inserted.

In section 10 of the principal Act, in sub-section (5), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be inserted.

After section 11 of the principal Act, the following section shall be

inserted, namely :—

“11A.

Notwithstanding anything contained in this Act, if the

Government is satisfied that,—

(a) a practice was, or is, generally prevalent regarding levy of

State tax (including non-levy thereof) on any supply of goods or

services or both ; and

(b) such supplies were, or are, liable to,—

(i) State tax, in cases where according to the said practice,

State tax was not, or is not being, levied, or

(ii) a higher amount of State tax than what was, or is being,

levied, in accordance with the said practice,

the Government may, on the recommendation of the Council, by

notification in the Official Gazette, direct that the whole of the State

tax payable on such supplies, or, as the case may be, the State tax in

excess of that payable on such supplies, but for the said practice,

shall not be required to be paid in respect of the supplies on which

Short title and

commencement.

Amendment

of section 2 of

Mah. XLIII of

2017.

Mah.

XLIII of

2017.

Amendment

of section 9 of

Mah. XLIII of

2017.

Amendment

of section 10

of Mah. XLIII

of 2017.

Insertion of

section 11A in

Mah.XLIII of

2017.

Power not to

recover Goods

and Services

Tax not levied

or short-levied

as a result of

general

practice.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

the State tax was not, or is not being levied, or was, or is being,

short-levied, in accordance with the said practice.”.

In section 13 of the principal Act, in sub-section (3),—

(1) in clause (b), for the words “by the supplier”, the words “by the

supplier, in cases where invoice is required to be issued by the supplier;

or” shall be substituted;

(2) after clause (b), the following clause shall be inserted,

namely :—

“(c) the date of issue of invoice by the recipient, in cases where

invoice is to be issued by the recipient:”;

(3) in the first proviso, after the words, brackets and letter “or clause

(b)", the words, brackets and letter “or clause (c)” shall be inserted.

In section 16 of the principal Act, after sub-section (4), the following

sub-sections shall be added and shall be deemed to have been added with

effect from the 1st July 2017, namely :—

“(5) Notwithstanding anything contained in sub-section (4), in respect

of an invoice or debit note for supply of goods or services or both

pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21,

the registered person shall be entitled to take input tax credit in any

return under section 39 which is filed up to the thirtieth day of November

2021.

(6) Where registration of a registered person is cancelled under

section 29 and subsequently the cancellation of registration is revoked

by any order, either under section 30 or pursuant to any order made by

the Appellate Authority or the Appellate Tribunal or court and where

availment of input tax credit in respect of an invoice or debit note was

not restricted under sub-section (4) on the date of order of cancellation

of registration, the said person shall be entitled to take the input tax

credit in respect of such invoice or debit note for supply of goods or

services or both, in a return under section 39,—

(i) filed up to thirtieth day of November following the financial

year to which such invoice or debit note pertains or furnishing of

the relevant annual return, whichever is earlier; or

(ii) for the period from the date of cancellation of registration

or the effective date of cancellation of registration, as the case may

be, till the date of order of revocation of cancellation of registration,

where such return is filed within thirty days from the date of order

of revocation of cancellation of registration, whichever is later.”.

In section 17 of the principal Act, in sub-section (5), in clause (i), for

the words and figures “sections 74, 129 and 130”, the words and figures “section

74 in respect of any period upto Financial Year 2023-24” shall be substituted.

For section 20 of the principal Act, the following section shall be

substituted, namely :—

“20. (1) Any office of the supplier of goods or services or both which

receives tax invoices towards the receipt of input services, including

invoices in respect of services liable to tax under sub-section (3) or

Amendment

of section 13

of Mah. XLIII

of 2017.

Amendment

of section 16

of Mah. XLIII

of 2017.

Amendment

of section 17

of Mah. XLIII

of 2017.

Substitution of

section 20 of Mah.

XLIII of 2017.

Manner of

distribution of

credit by Input

Service

Distributor.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

sub-section (4) of section 9, for or on behalf of distinct persons referred

to in section 25, shall be required to be registered as Input Service

Distributor under clause (viii) of section 24 and shall distribute the input

tax credit in respect of such invoices.

(2) The Input Service Distributor shall distribute the credit of State

tax or integrated tax charged on invoices received by him, including the

credit of State or integrated tax in respect of services subject to levy of

tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct

person registered in the same State as the said Input Service Distributor,

in such manner, within such time and subject to such restrictions and

conditions as may be prescribed.

(3) The credit of State tax shall be distributed as State tax or

integrated tax and integrated tax as integrated tax or State tax, by way

of issue of a document containing the amount of input tax credit, in such

manner as may be prescribed.”.

10.

In section 21 of the principal Act, after the words and figures

“section 73 or section 74”, the words, figures and letter “or section 74A” shall

be inserted.

11.

In section 30 of the principal Act, in sub-section (2), after the proviso,

the following proviso shall be added, namely :—

“Provided further that, such revocation of cancellation of registration

shall be subject to such conditions and restrictions, as may be prescribed.”.

12.

In section 31 of the principal Act,—

(a) in sub-section (3), in clause (f), after the words and figure “of

section 9 shall”, the words “,within the period as may be prescribed,”

shall be inserted;

(b) after clause (g), the following Explanation shall be inserted,

namely :—

“Explanation.— For the purposes of clause (f), the expression

“supplier who is not registered” shall include the supplier who is

registered solely for the purpose of deduction of tax under section

51.”.

13.

In section 35 of the principal Act, in sub-section (6), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be inserted.

14. In section 39 of the principal Act, for sub-section (3), the following

sub-section shall be substituted, namely :—

“(3) Every registered person required to deduct tax at source under

section 51 shall electronically furnish a return for every calendar month

of the deductions made during the month in such form and manner and

within such time as may be prescribed :

Provided that, the said registered person shall furnish a return for

every calendar month whether or not any deductions have been made

during the said month.”.

15.

In section 49 of the principal Act, in sub-section (8), in clause (c),

after the words and figures “section 73 or section 74”, the words, figures and

letter “or section 74A” shall be added.

Amendment

of section 49

of Mah. XLIII

of 2017.

Amendment

of section 21

of Mah. XLIII

of 2017.

Amendment

of section 30

of Mah. XLIII

of 2017.

Amendment

of section 31

of Mah. XLIII

of 2017.

Amendment

of section 35

of Mah. XLIII

of 2017.

Amendment

of section 39

of Mah. XLIII

of 2017.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

16.

In section 50 of the principal Act, in sub-section (1), in the proviso,

after the words and figures “section 73 or section 74”, the words, figures and

letter “or section 74A” shall be inserted.

17.

In section 51 of the principal Act, in sub-section (7), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be inserted.

18.

In section 54 of the principal Act,—

(1) in sub-section (3), the second proviso shall be deleted;

(2) after sub-section (14) and before the Explanation, the following

sub-section shall be inserted, namely :—

“(15) Notwithstanding anything contained in this section, no

refund of unutilised input tax credit on account of zero rated supply

of goods or of integrated tax paid on account of zero rated supply of

goods shall be allowed where such zero rated supply of goods is

subjected to export duty.”.

19.

In section 61 of the principal Act, in sub-section (3), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be added.

20.

In section 62 of the principal Act, in sub-section (1), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be inserted.

21.

In section 63 of the principal Act, after the words and figures

“section 73 or section 74”, the words, figures and letter “or section 74A” shall

be inserted.

22.

In section 64 of the principal Act, in sub-section (2), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be added.

23.

In section 65 of the principal Act, in sub-section (7), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be added.

24.

In section 66 of the principal Act, in sub-section (6), after the words

and figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be added.

25.

In section 70 of the principal Act, after sub-section (1), the following

sub-section shall be inserted, namely :—

“(1A) All persons summoned under sub-section (1) shall be bound to

attend, either in person or by an authorised representative, as such

officer may direct, and the person so appearing shall state the truth

during examination or make statements or produce such documents and

other things as may be required.”.

26.

In section 73 of the principal Act,—

(1) in the marginal note, after the words “Determination of tax”,

the words and figures “,pertaining to the period upto Financial Year

2023-24,” shall be inserted;

Amendment

of section 50

of Mah. XLIII

of 2017.

Amendment

of section 51

of Mah. XLIII

of 2017.

Amendment

of section 54

of Mah. XLIII

of 2017.

Amendment

of section 61

of Mah. XLIII

of 2017.

Amendment

of section 62

of Mah. XLIII

of 2017.

Amendment

of section 63

of Mah. XLIII

of 2017.

Amendment

of section 64

of Mah. XLIII

of 2017.

Amendment

of section 65

of Mah. XLIII

of 2017.

Amendment

of section 66

of Mah. XLIII

of 2017.

Amendment

of section 70

of Mah. XLIII

of 2017.

Amendment

of section 73

of Mah. XLIII

of 2017.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

(2) after sub-section (11), the following sub-section shall be added,

namely :—

“(12) The provisions of this section shall be applicable for

determination of tax pertaining to the period upto Financial Year

2023-24.”.

27.

In section 74 of the principal Act,—

(1) in the marginal note, after the words “Determination of tax”,

the words and figures “, pertaining to the period upto Financial Year

2023-24,” shall be inserted;

(2) after sub-section (11) and before Explanation 1, the following

sub-section shall be inserted, namely :—

“(12) The provisions of this section shall be applicable for

determination of tax pertaining to the period upto Financial Year

2023-24.” ;

(3) Explanation 2 shall be deleted.

28.

After section 74 of the principal Act, the following section shall be

inserted, namely :—

“74A. (1) Where it appears to the proper officer that any tax has

not been paid or short paid or erroneously refunded, or where input tax

credit has been wrongly availed or utilised, he shall serve notice on the

person chargeable with tax which has not been so paid or which has

been so short paid or to whom the refund has erroneously been made, or

who has wrongly availed or utilised input tax credit, requiring him to

show cause as to why he should not pay the amount specified in the

notice along with interest payable thereon under section 50 and a penalty

leviable under the provisions of this Act or the rules made thereunder:

Provided that, no notice shall be issued, if the tax which has not

been paid or short paid or erroneously refunded or where input tax credit

has been wrongly availed or utilised in a financial year is less than one

thousand rupees.

(2) The proper officer shall issue the notice under sub-section (1)

within forty-two months from the due date for furnishing of annual return

for the financial year to which the tax not paid or short paid or input tax

credit wrongly availed or utilised relates to or within forty-two months

from the date of erroneous refund.

(3) Where a notice has been issued for any period under sub-section

(1), the proper officer may serve a statement, containing the details of

tax not paid or short paid or erroneously refunded or input tax credit

wrongly availed or utilised for such periods other than those covered

under sub-section (1), on the person chargeable with tax.

(4) The service of such statement shall be deemed to be service of

notice on such person under sub-section (1), subject to the condition that

the grounds relied upon for such tax periods other than those covered

under sub-section (1) are the same as are mentioned in the earlier notice.

Amendment

of section 74

of Mah. XLIII

of 2017.

Insertion of

section 74A in

Mah. XLIII of

2017.

Determination

of tax not paid

or short paid

or erroneously

refunded or

input tax

credit wrongly

availed or

utilised for

any reason

pertaining to

Financial

Year 2024-25

onward.

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(5) The penalty in case where any tax which has not been paid or

short paid or erroneously refunded, or where input tax credit has been

wrongly availed or utilised,—

(i) for any reason, other than the reason of fraud or any

wilful-misstatement or suppression of facts to evade tax, shall be

equivalent to ten per cent. of tax due from such person or ten

thousand rupees, whichever is higher;

(ii) for the reason of fraud or any wilful-misstatement or

suppression of facts to evade tax shall be equivalent to the tax due

from such person.

(6) The proper officer shall, after considering the representation,

if any, made by the person chargeable with tax, determine the amount of

tax, interest and penalty due from such person and issue an order.

(7) The proper officer shall issue the order under sub-section (6)

within twelve months from the date of issuance of notice specified in

sub-section (2) :

Provided that, where the proper officer is not able to issue the order

within the specified period, the Commissioner, or an officer authorised

by the Commissioner senior in rank to the proper officer but not below

the rank of Joint Commissioner of State tax, may, having regard to the

reasons for delay in issuance of the order under sub-section (6), to be

recorded in writing, before the expiry of the specified period, extend

the said period further by a maximum of six months.

(8) The person chargeable with tax where any tax has not been paid

or short paid or erroneously refunded, or where input tax credit has

been wrongly availed or utilised for any reason, other than the reason of

fraud or any wilful-misstatement or suppression of facts to evade tax,

may,—

(i) before service of notice under sub-section (1), pay the amount

of tax alongwith interest payable under section 50 of such tax on

the basis of his own ascertainment of such tax or the tax as

ascertained by the proper officer and inform the proper officer in

writing of such payment, and the proper officer, on receipt of such

information shall not serve any notice under sub-section (1) or the

statement under sub-section (3), as the case may be, in respect of

the tax so paid or any penalty payable under the provisions of this

Act or the rules made thereunder;

(ii) pay the said tax alongwith interest payable under section

50 within sixty days of issue of show cause notice, and on doing so,

no penalty shall be payable and all proceedings in respect of the

said notice shall be deemed to be concluded.

(9) The person chargeable with tax, where any tax has not been

paid or short paid or erroneously refunded or where input tax credit

has been wrongly availed or utilised by reason of fraud, or any

wilful-misstatement or suppression of facts to evade tax, may,—

(i) before service of notice under sub-section (1), pay the amount

of tax alongwith interest payable under section 50 and a penalty

equivalent to fifteen per cent. of such tax on the basis of his own

ascertainment of such tax or the tax as ascertained by the proper

officer and inform the proper officer in writing of such payment,

and the proper officer, on receipt of such information, shall not serve

any notice under sub-section (1), in respect of the tax so paid or any

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penalty payable under the provisions of this Act or the rules made

thereunder;

(ii) pay the said tax alongwith interest payable under section

50 and a penalty equivalent to twenty-five per cent. of such tax

within sixty days of issue of the notice, and on doing so, all

proceedings in respect of the said notice shall be deemed to be

concluded;

(iii) pay the tax alongwith interest payable thereon under

section 50 and a penalty equivalent to fifty per cent. of such tax within

sixty days of communication of the order, and on doing so, all

proceedings in respect of the said notice shall be deemed to be

concluded.

(10) Where the proper officer is of the opinion that the amount paid

under clause (i) of sub-section (8) or clause (i) of sub-section (9) falls

short of the amount actually payable, he shall proceed to issue the notice

as provided for in sub-section (1) in respect of such amount which falls

short of the amount actually payable.

(11) Notwithstanding anything contained in clause (i) or clause (ii)

of sub-section (8), penalty under clause (i) of sub-section (5) shall be

payable where any amount of self-assessed tax or any amount collected

as tax has not been paid within a period of thirty days from the due date

of payment of such tax.

(12) The provisions of this section shall be applicable for

determination of tax pertaining to the Financial Year 2024-25 onwards.

Explanation 1.— For the purposes of this section,—

(i) the expression “all proceedings in respect of the said notice” shall

not include proceedings under section 132;

(ii) where the notice under the same proceedings is issued to the

main person liable to pay tax and some other persons, and such

proceedings against the main person have been concluded under this

section, the proceedings against all the persons liable to pay penalty

under sections 122 and 125 are deemed to be concluded.

Explanation 2.— For the purposes of this Act, the expression

“suppression” shall mean non-declaration of facts or information which a

taxable person is required to declare in the return, statement, report or any

other document furnished under this Act or the rules made thereunder, or

failure to furnish any information on being asked for, in writing, by the proper

officer.”.

29.

In section 75 of the principal Act,—

(1) in sub-section (1), after the word and figures “section 74”, the

words, brackets, figures and letter “or sub-sections (2) and (7) of section

74A” shall be inserted;

(2) after sub-section (2), the following sub-section shall be inserted,

namely :—

“(2A) Where any Appellate Authority or Appellate Tribunal

or court concludes that the penalty under clause (ii) of sub-section

(5) of section 74A is not sustainable for the reason that the charges

of fraud or any wilful-misstatement or suppression of facts to evade

Amendment

of section 75

of Mah. XLIII

of 2017.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, Êb÷ºÉå¤É®ú 17, 2024/+OÉ½þÉªÉhÉ 26, ¶ÉEäò 1946

tax has not been established against the person to whom the notice

was issued, the penalty shall be payable by such person, under clause

(i) of sub-section (5) of section 74A.”;

(3) for sub-section (10), the following sub-section shall be

substituted, namely :—

“(10) The adjudication proceedings shall be deemed to be

concluded, if the order is not issued within the period specified in

sub-section (10) of section 73 or in sub-section (10) of section 74 or

in sub-section (7) of section 74A.”;

(4) in sub-section (11), after the word and figures “section 74”, the

words, brackets, figures and letter “or sub-section (7) of section 74A”

shall be inserted;

(5) in sub-section (12), after the words and figures “section 73 or

section 74”, the words, figures and letter “or section 74A” shall be

inserted;

(6) in sub-section (13), after the words and figures “section 73 or

section 74”, the words, figures and letter “or section 74A” shall be

inserted.

30.

In section 104 of the principal Act, in sub-section (1), in the

Explanation, after the word and figures “section 74”, the words, brackets,

figures and letter “or sub-sections (2) and (7) of section 74A” shall be added.

31.

In section 107 of the principal Act,—

(1) in sub-section (6), in clause (b), for the word “twenty-five crore”,

the word “twenty crore” shall be substituted;

(2) in sub-section (11), in the second proviso, after the words and

figures “section 73 or section 74”, the words, figures and letter “or section

74A” shall be added.

32.

In section 109 of the principal Act, after the words “Revisional

Authority”, the words “, or for conducting an examination or adjudicating

the cases referred to in sub-section (2) of section 171, if so notified under the

said section” shall be inserted.

33.

In section 112 of the principal Act,—

(1) in sub-section (1), after the words “from the date on which the

order sought to be appealed against is communicated to the person

preferring the appeal”, the words “ ; or the date, as may be notified by

the Government, on the recommendations of the Council, for filing appeal

before the Appellate Tribunal under this Act, whichever is later” shall

be inserted and shall be deemed to have been inserted with effect from

the 1st August 2024;

(2) in sub-section (3), after the words “from the date on which the

said order has been passed”, the words “ ; or the date, as may be notified

by the Government, on the recommendations of the Council, for the

purpose of filing application before the Appellate Tribunal under this

Act, whichever is later,” shall be inserted and shall be deemed to have

been inserted with effect from the 1st August 2024;

(3) in sub-section (6), after the words, brackets and figure “after the

expiry of the period referred to in sub-section (1)”, the words, brackets

Amendment

of section 104

of Mah. XLIII

of 2017.

Amendment

of section 107

of Mah. XLIII

of 2017.

Amendment

of section 109

of Mah. XLIII

of 2017.

Amendment

of section 112

of Mah. XLIII

of 2017.

¦ÉÉMÉ +É`ö-91----2.

BSÉ¤ÉÒ-2148-2.

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and figure “or permit the filing of an application within three months

after the expiry of the period referred to in sub-section (3)” shall be

inserted;

(4) in sub-section (8), in clause (b),—

(a) for the words “twenty per cent.”, the words “ten per cent.”

shall be substituted;

(b) for the words “fifty crore rupees”, the words “twenty crore

rupees” shall be substituted.

34.

In section 122 of the principal Act, in sub-section (1B), for the words

“Any electronic commerce operator who”, the words and figures “Any

electronic commerce operator, who is liable to collect tax at source under

section 52,” shall be substituted and shall be deemed to have been substituted

with effect from the 1st October 2023.

35. After section 122 of the principal Act, the following section shall be

inserted, namely :—

“122A. (1) Notwithstanding anything contained in this Act, where

any person, who is engaged in the manufacture of goods in respect of

which any special procedure relating to registration of machines has

been notified under section 148, acts in contravention of the said special

procedure, he shall, in addition to any penalty that is paid or is payable

by him under Chapter XV or any other provisions of this Chapter, be

liable to pay a penalty equal to an amount of one lakh rupees for every

machine not so registered.

(2) In addition to the penalty under sub-section (1), every machine

not so registered shall be liable for seizure and confiscation :

Provided that, such machine shall not be confiscated where,—

(a) the penalty so imposed is paid; and

(b) the registration of such machine is made in accordance with

the special procedure within three days of the receipt of

communication of the order of penalty.”.

36.

In section 127 of the principal Act, after the words and figures

“section 73 or section 74”, the words, figures and letter “or section 74A” shall

be inserted.

37.

After section 128 of the principal Act, the following section shall

be inserted, namely :—

“128A. (1) Notwithstanding anything to the contrary contained in

this Act, where any amount of tax is payable by a person chargeable

with tax in accordance with,-—

(a) a notice issued under sub-section (1) of section 73 or a

statement issued under sub-section (3) of section 73, and where no

order under sub-section (9) of section 73 has been issued; or

(b) an order passed under sub-section (9) of section 73, and where

no order under sub-section (11) of section 107 or sub-section (1) of

section 108 has been passed ; or

(c) an order passed under sub-section (11) of section 107 or

sub-section (1) of section 108, and where no order under sub-section (1)

of section 113 has been passed,

Amendment

of section 122

of Mah. XLIII

of 2017.

Insertion of

section 122A

in Mah. XLIII

of 2017.

Amendment

of section 127

of Mah. XLIII

of 2017.

Insertion of

section 128A

in Mah. XLIII

of 2017.

Penalty for

failure to

certain

machines

used in

manufacture

of goods as

per special

procedure.

Waiver of

interest or

penalty or

both relating

to demands

raised under

section 73

for certain

tax periods.

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pertaining to the period from 1st July 2017 to 31st March 2020, or a part

thereof, and the said person pays the full amount of tax payable as per

the notice or statement or the order referred to in clause (a), clause (b)

or clause (c), as the case may be, on or before the date, as may be notified

by the Government on the recommendations of the Council, no interest

under section 50 and penalty under this Act, shall be payable and all the

proceedings in respect of the said notice or order or statement, as the

case may be, shall be deemed to be concluded, subject to such conditions

as may be prescribed :

Provided that, where a notice has been issued under sub-section (1)

of section 74, and an order is passed or required to be passed by the

proper officer in pursuance of the direction of the Appellate Authority

or Appellate Tribunal or a court in accordance with the provisions of

sub-section (2) of section 75, the said notice or order shall be considered

to be a notice or order, as the case may be, referred to in clause (a) or

clause (b) of this sub-section:

Provided further that, the conclusion of the proceedings under this

sub-section, in cases where an application is filed under

sub-section (3) of section 107 or under sub-section (3) of section 112 or an

appeal is filed by an officer of State tax under sub-section (1) of section

117 or under sub-section (1) of section 118 or where any proceedings are

initiated under sub-section (1) of section 108, against an order referred

to in clause (b) or clause (c) or against the directions of the Appellate

Authority or the Appellate Tribunal or the court referred to in the first

proviso, shall be subject to the condition that the said person pays the

additional amount of tax payable, if any, in accordance with the order of

the Appellate Authority or the Appellate Tribunal or the court or the

Revisional Authority, as the case may be, within three months from the

date of the said order:

Provided also that, where such interest and penalty has already

been paid, no refund of the same shall be available.

(2) Nothing contained in sub-section (1) shall be applicable in respect

of any amount payable by the person on account of erroneous refund.

(3) Nothing contained in sub-section (1) shall be applicable in respect

of cases where an appeal or writ petition filed by the said person is

pending before Appellate Authority or Appellate Tribunal or a court, as

the case may be, and has not been withdrawn by the said person on or

before the date notified under sub-section (1).

(4) Notwithstanding anything contained in this Act, where any

amount specified under sub-section (1) has been paid and the proceedings

are deemed to be concluded under the said sub-section, no appeal under

sub-section (1) of section 107 or sub-section (1) of section 112 shall lie

against an order referred to in clause (b) or clause (c) of sub-section (1),

as the case may be.”.

38. In section 171 of the principal Act,—

(1) in sub-section (2), the following proviso and Explanation shall

be added, namely :—

“Provided that, the Government may by notification, on the

recommendations of the Council, specify the date from which the

said Authority shall not accept any request for examination as to

whether input tax credits availed by any registered person or the

Amendment

of section 171

of Mah. XLIII

of 2017.

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reduction in the tax rate have actually resulted in a commensurate

reduction in the price of the goods or services or both supplied by

him.

Explanation.— For the purposes of this sub-section, “request for

examination” shall mean the written application filed by an applicant

requesting for examination as to whether input tax credits availed by any

registered person or the reduction in the tax rate have actually resulted in a

commensurate reduction in the price of the goods or services or both supplied

by him.”;

(2) the existing Explanation shall be renumbered as Explanation 1

thereof, and after Explanation 1 as so renumbered, the following

Explanation shall be added, namely :—

“Explanation 2.— For the purposes of this section, the

expression “Authority” shall include the “Appellate Tribunal.”.

39.

In Schedule III appended to the principal Act, after paragraph 8

and before Explanation 1, the following paragraphs shall be added,

namely :—

“9.

Activity of apportionment of co-insurance premium by the lead

insurer to the co-insurer for the insurance services jointly supplied by

the lead insurer and the co-insurer to the insured in coinsurance

agreements, subject to the condition that the lead insurer pays the central

tax, the State tax, the Union territory tax and the integrated tax on the

entire amount of premium paid by the insured.

10.

Services by insurer to the reinsurer for which ceding

commission or the reinsurance commission is deducted from reinsurance

premium paid by the insurer to the reinsurer, subject to the condition

that the Central tax, the State tax, the Union territory tax and the

integrated tax is paid by the reinsurer on the gross reinsurance premium

payable by the insurer to the reinsurer, inclusive of the said ceding

commission or the reinsurance commission.”.

40.

No refund shall be made of all the tax paid or the input tax credit

reversed, which would not have been so paid, or not reversed, had section 7

of this Act been in force at all material times.

41.

(1) The Maharashtra Goods and Services Tax (Amendment)

Ordinance, 2024, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken

(including any notification or order issued) under the corresponding

provisions of the principal Act, as amended by the said Ordinance, shall be

deemed to have been done, taken or issued, as the case may be, under the

corresponding provisions of the principal Act, as amended by this Act.

Amendment of

Schedule III of

Mah. XLIII of

2017.

No refund of

tax paid or

input tax

credit

reversed.

Repeal of

Mah. Ord.

IX of 2024

and saving.

Mah.

Ord. IX

of 2024.

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STATEMENT OF OBJECTS AND REASONS

Various decisions have been taken by the Goods and Services Tax Council

in its meeting requiring amendments in Goods and Service Tax Laws.

Accordingly, the Central Goods and Services Tax, 2017 (12 of 2017) has been

amended by the Parliament by the Finance Act, 2024 (8 of 2024) and the

Finance (No. 2) Act, 2024 (15 of 2024). In order to implement the decisions

taken by the Goods and Services Tax Council in aforesaid meetings and to

maintain uniformity in applicability of the provisions of the Central Goods

and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax

Act, 2017 (Mah. XLIII of 2017), it was expedient to amend the Maharashtra

Goods and Services Tax Act, 2017.

2. The amendments to the Maharashtra Goods and Services Tax Act,

2017, inter alia, provide for the following, namely :—

(i) to substitute sub-section (61) of section 2, so as to make Input

Service Distributor procedure mandatory for distribution of Input Tax

Credit in respect of input services procured by Head Office from third

party but attributable to both Head Office and Branch Office or

exclusively to one or more Branch Offices;

(ii) to amend section 9, so as not to levy State tax on un-denatured

extra neutral alcohol or rectified spirit used for manufacture of alcoholic

liquor for human consumption;

(iii) to insert section 11A, so as to empower the Government to

regularize non-levy or short levy of State tax where it is satisfied that

such non-levy or short levy was a result of general practice;

(iv) to amend sub-section (3) of section 13, so as to specify the time

of supply of services in cases where the invoice is required to be issued

by the recipient of services in cases of reverse charge supplies;

(v) to insert sub-section (5) in section 16, so as to carve out an

exception to the existing sub-section (4) and to provide that in respect of

an invoice or debit note under the said sub-section, for the Financial

Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall

be entitled to take input tax credit in any return under section 39 which

is filed up to the thirtieth day of November 2021;

(vi) to amend sub-section (5) of section 17, so as to restrict the non-

availability of input tax credit in respect of tax paid under section 74 of

the said Act only for demands up to Financial Year 2023-24;

(vii) to insert new proviso in sub-section (2) of section 30, so as to

empower the State Government to prescribe conditions and restrictions

for revocation of cancellation of registration;

(viii) to amend sub-section (3) of section 39, so as to mandate the

electronic furnishing of return for each month by the registered person

required to deduct tax at source, irrespective of whether any deduction

has been made in the said month or not;

(ix) to insert sub-section (1A) in section 70, so as to enable an

authorised representative to appear on behalf of the summoned person

before the proper officer in compliance of summons issued by the said

officer;

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(x) to insert sub-section (12) in section 73, so as to restrict the

applicability of the said section for determination of tax pertaining to

the period upto Financial Year 2023-24;

(xi) to insert sub-section (12) in section 74, so as to restrict the

applicability of the said section for determination of tax pertaining to

the period upto Financial Year 2023-24;

(xii) to insert section 74A, so as to provide for determination of tax

not paid or short paid or erroneously refunded or input tax credit wrongly

availed or utilised for any reason pertaining to the Financial Year

2024-25 onwards;

(xiii) to amend sub-section (6) of section 107, so as to reduce the

maximum amount of pre-deposit for filing appeal before the Appellate

Authority from rupees twenty-five crore to rupees twenty crore in State

tax;

(xiv) to amend section 109, so as to empower the Government to

notify types of cases that shall be heard by the Appellate Tribunal ;

(xv) to amend sub-sections (1) and (3) of section 112, so as to empower

the Government to notify the date for filing appeal before the Appellate

Tribunal and provide a revised time limit for filing appeals or application

before the Appellate Tribunal;

(xvi) to amend sub-section (8) of section 112, so as to reduce the

maximum amount of pre-deposit for filing appeals before the Appellate

Tribunal from the existing twenty per cent. to ten per cent. of the tax in

dispute and also reduce the maximum amount payable as pre-deposit

from rupees fifty crore to rupees twenty crore in State tax;

(xvii) to amend sub-section (1B) of section 122, so as to restrict the

applicability of the said sub-section to electronic commerce operators,

who are required to collect tax at source under section 52 of the said

Act.

(xviii) to insert section 122A, so as to provide the provision of penalty

of Rs. One lakh for any machine not so registered for acting in

contravention of the special procedure notified under section 148;

(xix) to insert section 128A, to provide for a conditional waiver of

interest and penalty in respect of demand notices issued under section

73 of the said Act for the Financial Years 2017-18, 2018-19 and 2019-20,

except the demands notices in respect of erroneous refund;

(xx) to amend sub-section (2) of section 171, so as to empower the

Government to notify the date from which the Authority under the said

section shall not accept any application for anti-profiteering cases;

(xxi) to insert Paragraphs 9 and 10 in Schedule III;

(xxii) to amend sub-section (5) of section 10, section 21, sub-section

(6) of section 35, sub-section (8) of section 49, sub-section (1) of section

50, sub-section (7) of section 51, sub-section (3) of section 61, sub-section

(1) of section 62, section 63, sub-section (2) of section 64, sub-section (7)

of section 65, sub-section (6) of section 66, section 75, sub-section (1) of

section 104, sub-section (11) of section 107 and section 127, so as to

incorporate a reference to the proposed new section 74A.

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MEMORANDUM REGARDING DELEGATED LEGISLATION

The Bill involves the following proposals for delegation of legislative

power, namely :—

Clause 1 (3).— Under this clause, power is taken to the State Government,

to bring into force the remaining sections of the Act on such date, with

prospective or retrospective effect, as the State Government may, by

notification in the Official Gazette, appoint and different dates may be

appointed for different provisions of this Act.

Clause 5.— Under this clause, which seeks to insert a new section 11A

in the said Act, power is taken to the State Government, to direct that State

tax on certain goods or services if there has been a common practice of not

levying the tax or levying a lower amount than required shall not be recover.

Clause 9.— Under this clause, which seeks to substitute section 20 of

the said Act, power is taken to the State Government,—

(i) in sub-clause (2) to prescribe the manner, time and restrictions

and conditions for distribution of credit of State tax or integrated tax

charged on invoices received by the Input Service Distributor ;

(ii) in sub-clause (3) to prescribe the manner of distribution of the

credit of State tax or integrated tax charged on invoices received by

Input Service Distributor.

Clause 11.— Under this clause, which seeks to add proviso to sub-section

(2) of section 30 of the said Act, power is taken to the State Government, to

prescribe the conditions and restrictions for revocation of cancellation of

registration.

Clause 12.— Under this clause, which seeks to amend section 31 of the

said Act, power is taken to the State Government, to prescribe a period for a

registered person who is liable to pay tax under sub-section (3) or sub-section

(4) of section 9 to issue an invoice in respect of goods or services or both

received by him from the supplier who is not registered on the date of receipt

of goods or services or both.

Clause 14.— Under this clause, which seeks to substitute sub-section (3)

of section 39 of the said Act, power is taken to the State Government, to

prescribe the form, manner and time for furnishing electronically return by

registered person who deduct tax at source under section 51.

Clause 33.— Under this clause, which seeks to amend section 112 of the

said Act, power is taken to the State Government, to notify the date for filing

appeal before the Appellate Tribunal.

Clause 37.— Under this clause, which seeks to insert a new section 128A

in the said Act, power is taken to the State Government, to notify the date

for waiver of interest or penalty or both where a person pays the full amount

of tax due as specified in certain notices or orders, as the case may be, prescribe

the conditions for concluding the proceeding.

Clause 38.— Under this clause, which seeks to amend sub-section (2) of

section 171 of the said Act, power is taken to the State Government, specify

the date from which the Authority shall not accept any request for examination

of input tax credit.

The above-mentioned proposals for delegation of legislative power

are of normal character.