**Executive Summary**
This document is a notification from the Finance Department of the Government of Maharashtra, dated February 5, 2026, amending the Maharashtra Goods and Services Tax Rules, 2017. It introduces the Maharashtra Goods and Services Tax (Fifth Amendment) Rules, 2025, effective from February 1, 2026, and includes provisions for valuing the supply of certain goods based on their retail sale price.
**Key Points / Main Content**
* **Short Title and Commencement:** The rules are titled "Maharashtra Goods and Services Tax (Fifth Amendment) Rules, 2025" and are effective from February 1, 2026.
* **Insertion of Rule 31D:** A new rule 31D is inserted into the Maharashtra Goods and Services Tax Rules, 2017, concerning the value of the supply of goods based on the retail sale price.
* The value of supply for goods specified in the table will be deemed to be the retail sale price, less applicable tax.
* **List of Goods covered:**
* Pan masala (Tariff item 2106 90 20)
* Unmanufactured tobacco; tobacco refuse [other than tobacco leaves] (Tariff item 2401)
* Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes (Tariff item 2402)
* Other manufactured tobacco and manufactured tobacco substitutes; "homogenised” or “reconstituted” tobacco; tobacco extracts and essences (other than biris) (Tariff item 2403)
* Products containing tobacco or reconstituted tobacco and intended for inhalation without combustion (Tariff item 2404 11 00)
* Products containing tobacco or nicotine substitutes and intended for inhalation without combustion (Tariff item 2404 19 00)
* **Tax Calculation:** The amount of applicable tax is calculated as: (Retail sale price X tax rate in % of applicable taxes) / (100+ sum of applicable tax rate).
* **Definitions**
* Applicable tax: IGST or CGST or SGST or UTGST.
* Retail sale price: Maximum price declared on goods in packaged form, including all taxes, duties, surcharge or cess.
* **Amendment to Rule 86B:** In rule 86B, a new clause (f) is inserted: A registered person, other than a manufacturer, is exempted from the provisions of this rule only in respect of goods specified under rule 31D, on which the tax has been paid by the supplier on the basis of retail sale price.
**Impact Analysis**
**Stakeholder: Registered Persons (Suppliers)**
* **Impact:** They need to comply with the new rules for valuing and taxing the supply of goods specified under rule 31D based on the retail sale price.
* **Action Required:** Implement the new tax calculation method for applicable goods and comply with revised provisions related to retail sale price.
**Stakeholder: Registered Persons (Other Than Manufacturers)**
* **Impact:** Are exempted from the provisions of rule 86B only in respect of goods specified under rule 31D, on which the tax has been paid by the supplier on the basis of retail sale price.
* **Action Required:** Be aware of this exemption and keep records showing that the tax has been paid on the basis of retail sale price.
**Stakeholder: Consumers**
* **Impact:** The price of the specified goods may change, affecting the amount paid by the consumer for these goods.
* **Action Required:** None.
Key Entities Referenced
Maharashtra Goods and Services Tax Act, 2017: The principal act being amended by the notification.
Maharashtra Goods and Services Tax Rules, 2017: The rules being amended by this notification.
Rule 31D: Rule inserted into the Maharashtra Goods and Services Tax Rules, 2017, concerning the value of supply of goods based on retail sale price.
Section 164: Section of the Maharashtra Goods and Services Tax Act, 2017 which provides the power to make rules.
Finance Department (Maharashtra): The department of the Government of Maharashtra that issued the notification.
RNI No. MAHBIL /2009/37831
महाारााष्ट्रट शाासन रााजपत्र
असाधााराण भााग चाारा-ब
वर्षष १२, अंक १७(३)] गुरुवारा, फेेब्रुुवाराी ५, २०२६/माघ १६, शाके १९४७ [पष्ृठे े2, किंकमं त : रुपये े९.००
असाधााराण क्रमांक ४४
प्रााकिंधाकृत प्राकाशान
महाारााष्ट्र शाासनाने महाारााष्ट्र अकिंधाकिंनयेमांन्वयेे तयेारा केलेेलेे
(भााग एक, एक-अ आकिंण एक-ले येांमध्येे प्राकिंसद्ध केलेेलेे किंनयेम व आदेेशा येांव्येकिंतरिराक्त) किंनयेम व आदेेशा.
FINANCE DEPARTMENT
Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,
Mumbai 400 032, dated the 5th February, 2026.
NOTIFICATION
Notification No. 20/2025—State Tax
Maharashtra Goods and services tax act, 2017.
No. MGST.2026/C.R.-8(1) /Taxation-1.—In exercise of the powers conferred by section 164
of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Government of
Maharashtra, on the recommendations of the Council, hereby makes the following rules further to
amend the Maharashtra Goods and Services Tax Rules, 2017, namely:—
1. Short title and commencement. (1) These rules may be called as the Maharashtra Goods
and Services Tax (Fifth Amendment) Rules, 2025.
(2) They shall come into force from 1st day of February, 2026.
2. In the Maharashtra Goods and Services Tax Rules, 2017 (hereinafter referred to as the said
rules), after rule 31C, the following rule shall be inserted, namely:—
“31D. Value of supply of goods on basis of retail sale price.—(1) Notwithstanding
anything contained in the provisions of this Chapter, the value of supply of goods bearing the
description specified in column (3), falling under the corresponding Chapter/ heading/ sub-
heading/ tariff item specified in column (2), of the Table below, shall be deemed to be the retail
sale price declared on such goods, less the amount of tax as applicable, namely:—
Table
Sr. Chapter / Heading / Sub- Description of Goods
No. heading / Tariff item
(1) (2) (3)
1. 2106 90 20 Pan masala
(१)
भााग चाार-ब-४४–१2 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग चाारा-ब, फेेब्रुुवाराी ५, २०२६/माघ १६, शाके १९४७
(1) (2) (3)
2. 2401 Unmanufactured tobacco; tobacco refuse [other than
tobacco leaves]
3. 2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of
tobacco substitutes
4. 2403 Other manufactured tobacco and manufactured tobacco
substitutes; “homogenised” or “reconstituted” tobacco;
tobacco extracts and essences (other than biris)
5. 2404 11 00 Products containing tobacco or reconstituted tobacco and
intended for inhalation without combustion
6. 2404 19 00 Products containing tobacco or nicotine substitutes and
intended for inhalation without combustion
(2) The amount of applicable tax referred to in sub-rule (1) shall be determined in the following
manner, namely:—
Tax amount = (Retail sale price X tax rate in % of applicable taxes) / (100+ sum of applicable
tax rate).
Explanation.—For the purposes of this rule, —
(a) “applicable tax” means IGST or CGST or SGST or UTGST as the case may be.
(b) “retail sale price” means the maximum price declared on goods at which such goods in
packaged form may be sold to the ultimate consumer and includes all taxes, duties, surcharge
or cess by whatever name called;
(c) where on the package of any specified goods more than one retail sale price is declared,
the maximum of such retail sale price shall be deemed to be the retail sale price;
(d) where the retail sale price declared on packages of any specified goods is altered to
increase the retail sale price at any stage before, during, or after the supply, such altered retail
sale price shall be deemed to be the retail sale price;
(e) where different retail sale prices are declared on different packages for the sale of any
specified goods above in packaged form in different areas, each such retail sale price shall be
the retail sale price for the purposes of valuation of the specified goods intended to be sold in
the area to which the retail sale price relates.”.
3. In the said rules, in rule 86B, in the first proviso, after clause (e), the following clause shall
be inserted, namely: —
“(f) the registered person other than a manufacturer shall be exempted from the provisions
of this rule only in respect of goods specified under rule 31D, on which the tax has been paid by
the supplier on the basis of retail sale price:”.
By order and in the name of the Governor of Maharashtra,
SANJAY KANDHARE
Deputy Secretary to Government.
Note:—The principal rules were published in the Maharashtra Government Gazette, Extraordinary,
No.170 Part IV-B, vide notification No. MGST. 1017/C.R.- 90/Taxation-1, dated the 22nd June 2017 and
was last amended vide Finance Department Notification No. MGST.2025/C.R.-38/ Taxation-1, dated
the 12th November, 2025 [Notification No.18/2025-State Tax] which was published in the Maharashtra
Government Gazette, Extra-ordinary No. 408, Part IV-B, dated the 12th November, 2025.
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.