L. A. BILL No. III OF 2026.

A BILL

further to amend the Maharashtra Settlement of Arrears of Tax, Interest,

Penalty or Late Fee Act, 2025.

WHEREAS it is expedient further to amend the Maharashtra Settlement

of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025, for the purposes

hereinafter appearing ; it is hereby enacted in the Seventy-seventh Year of the

Republic of India as follows :—

1. This Act may be called the Maharashtra Settlement of Arrears of Tax,

Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026.

Mah.

XVII of

2025.

Short title.

RNI No. MAHBIL /2009/40123

महाारााष्ट्रट शाासन रााजपत्र

असाधाारण भााग पाच-अ

वर्षष १२, अंक २]

बुुधवाार, फेेब्रुुवारी २५, २०२६/फाल्गुन ६, शकेे १९४७

[पृष्ठेे 5, किं�ंमत : रुपयेे ३६.००

असाधाारण क्रमांं�क ३

प्रााधि�कृृत प्रकााशन

महाारााष्ट्र वि�धाानसभेत व महाारााष्ट्र वि�धाानपरि�षषदेेत सादर केलेेली वि�धेेयकेे.

MAHARASHTRA LEGISLATURE SECRETARIAT

The following Bill was introduced in the Maharashtra Legislative Assembly on the

25th February, 2026 is published under Rule 117 of the Maharashtra Legislative Assembly Rules :—

भाग पाच-अ-३–१

(1)

महाराष्ट्रõ शासन रा

असाधारण भाग पाच-अ, फेब्रुवारी २५,

२०२६/फाल्गुन ६, शके १

2. In section 10 of the Maharashtra Settlement of Arrears of Tax, Interest,

Penalty or Late Fee Act, 2025 (hereinafter referred to as “the principal Act”), in

the Table, in column (4), for the figures, letters and word “31st December 2025”

the figures, letters and word “31st March 2026” shall be substituted.

3. In section 11 of the principal Act, after sub-section (1), the following

provisos shall be added, namely:—

“Provided that, where more than one appeal is filed in respect of the

same statutory order and such appeals involve distinct and severable

issues, the applicant may, for the purpose of availing the benefit under

this Act, fully and unconditionally withdraw the appeal relating to such

distinct and severable issues, without affecting the continuance of the

remaining appeal or appeals:

Provided further that, where any payment of requisite amount has

been made in respect of a statutory order, whether in appeal or otherwise,

on or before the date of commencement of this Act and,–

(a) where such payment is identifiable issue-wise, it shall be adjusted

against the liability relating to the corresponding issue or issues;

(b) where such payment is not identifiable issue-wise, it shall be

adjusted proportionately against the liability arising out of the appeal or

appeals withdrawn under this section and the appeal or appeals which

continue to remain pending, in such manner as may be determined by the

designated authority.”.

4. Notwithstanding anything contained in the Maharashtra Settlement

of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025 (hereinafter

referred to as “the said Act”) or in any judgement, decree or order of

any court, any payment of requisite amount of tax, interest, penalty or

late fee under the relevant Act as defined under the said Act, paid

and collected under the said Act from any applicant, after the 31st December

2025 and till the date of commencement of the Maharashtra Settlement of

Arrears of Tax, Interest, Penalty or Late Fee (Amendment and Validation)

Act, 2026, shall be deemed to be and shall be deemed always to have been duly

and validly paid and collected in accordance with law as if the provisions of the

said Act, as amended by this Act, had been continuously in force at all material

times and accordingly,—

(a) no suit or proceedings shall be maintained or continued in or before

any court or any authority for the refund of any amount received or realised

by way of requisite amount;

(b) no court or any other authority shall enforce any decree or order

directing the refund of any amount received or realised by way of such

requisite amount.

Amendment

of section 10

of Mah. XVII

of 2025.

Mah.

XVII of

2025.

Amendment

of section 11

of Mah. XVII

of 2025.

Validation.

Mah.

XVII of

2025.

Mah.

...... of

2026.

महाराष्ट्रõ शासन रा

असाधारण भाग पाच-अ, फेब्रुवारी २५,

२०२६/फाल्गुन ६, शके १

STATEMENT OF OBJECTS AND REASONS

The Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late

Fee Act, 2025 (Mah. XVII of 2025) has been enacted to provide for settlement

of arrears of tax, interest, penalty or late fee, which were levied, imposed or

payable under the various Acts implemented by the Department of Goods and

Services Tax, Government of Maharashtra, payable by the Corporations, Public

Sector Banks, Departments, Rural or Urban Local Bodies or other Authorities,

Enterprises or Entities, which are registered under Central Acts other than

the Companies Act, 2013 (18 of 2013) or State Acts or are constituted by the

Government Resolutions.

2. Section 10 of the said Act provides 31st December 2025 as the last

date for payment of the requisite amount of tax, interest, penalty or late fee

under the relevant Act. However, it has been observed that several eligible

Public Sector Undertakings and Government entities, though willing to avail

the benefit of settlement, could not complete the process of withdrawal of

appeals and payment of requisite amount within the specified time limit, due

to pendency of appeals at various appellate forums. The State Government has

received several representations from such entities to extend the said last date

of payment. The Government, therefore, considers it expedient to extend the

said last date upto 31st March 2026. It is, therefore, proposed to amend section

10 of the said Act, suitably.

3. It has been observed that, in certain cases, a single statutory

order involves more than one distinct and severable issues and separate

appeals are pending in respect of such issues. The existing provision of

section 11 of the said Act requires withdrawal of appeal as a condition for

settlement. Due to this provision, the applicant has to withdraw the appeal

fully, even though he intends to settle some of the distinct and severable

issue in appeal. It is, therefore, considered expedient to amend section

11 of the said Act to permit withdrawal of appeal only in respect of such

distinct and severable issues in appeal which the applicant intends to settle,

without affecting the continuance of remaining issues in appeals, and to provide

for proportionate adjustment of payments.

4. The Bill seeks to achieve the above objectives.

Mumbai,

DEVENDRA FADNAVIS,

Dated the 23rd February, 2026.

Chief Minister.

भाग पाच-अ-३–२

महाराष्ट्रõ शासन रा

असाधारण भाग पाच-अ, फेब्रुवारी २५,

२०२६/फाल्गुन ६, शके १

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR,

RUPENDRA DINESH MORE, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD,

MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATIONS,

21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004. EDITOR : DIRECTOR, RUPENDRA DINESH MORE.

GOVERNOR’S RECOMMENDATION UNDER ARTICLE 207 OF THE

CONSTITUTION OF INDIA

(Copy of Government of Maharashtra Order,

Law and Judiciary Department)

In exercise of the power conferred upon him by clause (1) of Article 207

of the Constitution of India, the Governor of The Maharashtra is pleased to

recommend to the Maharashtra Legislative Assembly, the Introduction of

the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee

(Amendment and Validation) Bill, 2026.

Vidhan Bhavan:

JITENDRA BHOLE,

Mumbai,

Secretary-1,

Dated the 25th February, 2026.

Maharashtra Legislative Assembly.