Home India CENTRAL SECTION Part VIII, Ext. 55, L. A. BILL No. LXXIII OF 2025 A BILL fur...
Date: 2025-07-03 Category: Not Applicable State: Maharashtra Country: India

Part VIII, Ext. 55, L. A. BILL No. LXXIII OF 2025 A BILL further to amend the Maharashtra Goods and Services Tax Act, 2017. Thursday, 3rd July 2025.

Issued by CENTRAL SECTION · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is the Maharashtra Goods and Services Tax (Amendment) Bill, 2025, introduced in the Maharashtra Legislative Assembly on July 3, 2025. It amends the Maharashtra Goods and Services Tax Act, 2017, to align with decisions made by the Goods and Services Tax Council and the Central Goods and Services Tax Act, 2017. Some amendments are effective from April 1, 2025, or July 1, 2017, while the remaining sections will come into force on a date to be notified by the State Government. **Key Points / Main Content** * **Amendment of Section 2 (Definitions)** * Clause (61): Expands the definition to explicitly include interstate Reverse Charge Mechanism (RCM) transactions. Effective April 1, 2025. * Clause (69): Modifies sub-clause (c) and inserts an Explanation defining "Local Fund" and "Municipal Fund". * New Clause (116A): Introduces a definition for "unique identification marking" related to track and trace mechanisms. * **Deletion of Subsections** * Section 12(4) and Section 13(4): Removes provisions related to the time of supply for transactions involving vouchers. * **Amendment of Section 17 (Input Tax Credit)** * Clause (d) of subsection (5) is amended with restrospective effect from 1st July 2017; * Insertion of new explanation on what is meant by plant or machinery * **Amendment of Section 20 (Input Service Distributor)** * Expands subsections (1) and (2) to include interstate Reverse Charge Mechanism (RCM) transactions. Effective April 1, 2025. * **Amendment of Section 34 (Credit Notes)** * Modifies subsection (2) regarding the conditions for reduction in output tax liability of the supplier through a credit note. * **Amendment of Section 38 (Returns)** * Modifies subsections (1) and (2) to remove the term "auto-generated" in relation to the statement of input tax credit. * **Amendment of Section 39 (Returns)** * Amends subsection (1) to enable prescribing conditions and restrictions for filing of returns. * **Amendment of Sections 107 & 112 (Appeals)** * Amends the proviso to subsection (6) of section 107 and inserts new proviso to subsection (8) of section 112, to lower payment to ten per cent, to enable filing of appeals before the Appellatte Tribunal * **Insertion of New Section 122B (Penalty)** * Introduces a penalty for contravention of the provisions related to track and trace mechanisms under Section 148A. * **Insertion of New Section 148A (Track and Trace Mechanism)** * Enables the government to specify goods and persons to which track and trace provisions will apply. * Outlines provisions for unique identification markings, electronic storage, and information access. * **Amendment of Schedule III** * Inserts new clause (aa) and explanation 3 with restropective effect from 1st July 2017, relating to supply of goods warehoused in a Special Economic Zone or in a Free Trade Warehousing Zone **Impact Analysis** **Goods and Services Tax Council** * **Impact:** The bill is directly implementing the decisions taken by them. * **Action Required:** N/A **State Government** * **Impact:** The bill empowers the state government to enforce these amendments. * **Action Required:** Issue necessary notifications to bring the remaining sections into force and implement the new track and trace mechanism. **Registered Persons (Taxpayers)** * **Impact:** Changes in definitions, input tax credit rules, return filing requirements, appeal processes, and new penalties affect their compliance obligations. * **Action Required:** Update systems and processes to comply with the amended provisions, especially regarding RCM transactions, credit notes, track and trace requirements, and appeal procedures. **Local and Municipal Authorities** * **Impact:** The definitions of "Local Fund" and "Municipal Fund" directly impact these entities. * **Action Required:** Understand and apply the new definitions in relation to their tax obligations.

Key Entities Referenced

Maharashtra Goods and Services Tax Act, 2017: The principal Act being amended by this bill. Referred to as 'the principal Act' in the document. Maharashtra Goods and Services Tax (Amendment) Act, 2025: The act introduced in the Maharashtra Legislative Assembly to amend the Maharashtra Goods and Services Tax Act, 2017. Constitution of India: Referenced in clause (3) of article 348, which mandates the publication of the English translation of the Bill. Goods and Services Tax Council: The council that has taken decisions requiring amendments in Goods and Service Tax Laws, and the decisions are implemented in this bill. Integrated Goods and Services Tax Act, 2017: Referenced in amendments to the Maharashtra Goods and Services Tax Act, 2017 concerning interstate Reverse Charge Mechanism (RCM) transactions.
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RNI No. MAHENG /2009/35528 महाारााष्ट्र� शाासन रााजपत्र असाधााराण भााग आठ वर्षष ११, अंक २३] गुरुवारा, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ [पष्ृठ े९, किंकमं त : रुपये े२७.०० असाधााराण क्रमांक ५५ प्रााकिंधाकृत प्राकाशान महाारााष्ट्र किंवधाानमंडळााचेे अकिंधाकिंनयेम व रााज्येपालैांनी प्रााख्येाकिंपत केलैेलैे अध्येादेेशा व केलैेलैे किंवकिंनयेम आकिंण किंवधाी व न्येाये किंवभाागाकडून आलैेलैी किंवधाेयेके (इंंग्रजी अनुवादे). In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in English of the Maharashtra Goods and Services Tax (Amendment) Bill, 2025 (L. A. BILL No. LXXIII of 2025), introduced in the Maharashtra Legislative Assembly on the 3rd July 2025, 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. L. A. BILL No. LXXIII OF 2025. A BILL further to amend the Maharashtra Goods and Services Tax Act, 2017. Mah. WHEREAS it is expedient further to amend the Maharashtra Goods and XLIII of Services Tax Act, 2017, for the purposes hereinafter appearing; it is hereby 2017. enacted in the Seventy-sixth Year of the Republic of India as follows :— 1. (1) This Act may be called the Maharashtra Goods and Services Tax Short title (Amendment) Act, 2025. and commence- (2) Save as otherwise provided in this Act, this section shall come ment. into force with immediate effect, and the remaining sections shall come into force 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 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. भााग आठ-५५–१be appointed for different provisions of this Act and any reference in any such provision the comencement of this Act, shall be construed as a reference to the coming into force of that provision. 2. In section 2 of the Maharashtra Goods and Services Tax Act 2017 (hereinafter referred to as “the principal Act”),— (i) In clause (61), after the word and figure “section 9’’, the words, brackets 2 महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ and figures ‘‘of this Act or under sub-section (3) or sub-section (4) of section 5 Amendment 2. In section 2 of the Maharashtra Goods and Services Tax Act, 2017 Mah. of the integrated Goods and Services Tax Act,’’ shall be inserted and shall be of section 2 of (hereinafter referred as the “principal Act”),— XLIII of deemed to have been inserted with effect from the 1st day of April 2025; Mah. XLIII of 2017. 2017. (i) in clause (61), after the word and figure “section 9”, the words, (ii) in clause (69) brackets and figures “of this Act or under sub-section (3) or sub-section (4) (a) in sub-clause (c), after the words “management of a municipal”, of section 5 of the Integrated Goods and Services Tax Act,” shall be inserted the word “fund” shall be inserted; and shall be deemed to have been inserted with effect from the 1st day of April 2025 ; (b) after sub-clause (c), the following Explanation shall be inserted, namely:- (ii) in clause (69),— “Explanation.- For the purposes of this sub-clause- (a) in sub-clause (c), after the words “management of a municipal”, the word “ fund ” shall be inserted ; (a) “local fund” means any fund under the control or management (b) after sub-clause (c), the following Explanation shall be of an authority of a local self-government established for discharging civic inserted, namely :— functions in relation to a Panchayat area and vested by law with the powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever “ Explanation.— For the purposes of this sub-clause ,— name called (a) local fund” means any fund under the control or management of an authority of a local self-government established for discharging civic Amendment of functions in relation to a Panchayat area and vested by law with the powers section 12 of Mah. XLIII of to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever 2017. name called ; (b) “ municipal fund ” means any fund under the control or management of an authority of a local self-government established for discharging civic functions in relation to a Metropolitan area or Municipal area and vested by law with the powers to levy, collect and appropriate any tax, duty, toll, cess or fee, by whatever name called ;” ; (iii) after clause (116), the following clause shall be inserted, namely: –– “(116A) ‘‘unique identification marking’’ means the unique identification marking referred to in clause (b) of sub-section (2) of section 148A and includes a digital stamp, digital mark or any other similar marking, which is unique, secure and non-removable ; ”. Amendment 3. In section 12 of the principal Act, sub-section (4) shall be deleted. of section 12 of Mah. XLIII of 2017. Amendment 4. In section 13 of the principal Act, sub-section (4) shall be deleted. of section 13 of Mah. XLIII of 2017. Amendment 5. In section 17 of the principal Act, in sub-section (5), in clause (d), –– of section 17 (i) for the words “plant or machinery”, the words “plant and machinery” of Mah. XLIII of 2017. shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July 2017 ; (ii) the Explanation shall be numbered as Explanation 1 thereof, and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely : –– “Explanation 2.––For the purposes of clause (d), it is hereby clarified that notwithstanding anything to the contrary contained in any judgment, decree or order of any court, tribunal, or other authority, any reference to ‘plant or machinery’ shall be construed and shall always be deemed to have been construed as a reference to ‘ plant and machinery ’ ; ”.महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 3 6. In section 20 of the principal Act, with effect from the 1st day of April Amendment of 2025, –– section 20 of Mah. XLIII of (i) in sub-section (1), after the word and figure “section 9”, the words, 2017. brackets and figures “of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act” shall be inserted ; (ii) in sub-section (2), after the word and figure “section 9”, the words, brackets and figures “of this Act or under sub-section (3) or sub-section (4) of section 5 of the Integrated Goods and Services Tax Act” shall be inserted. 7. In section 34 of the principal Act, in sub-section (2), for the proviso, the Amendment of following proviso shall be substituted, namely : –– section 34 of Mah. XLIII “Provided that no reduction in output tax liability of the supplier shall of 2017. be permitted, if the–– (i) input tax credit as is attributable to such a credit note, if availed, has not been reversed by the recipient, where such recipient is a registered person ; or (ii) incidence of tax on such supply has been passed on to any other person, in other cases.”. 8. In section 38 of the principal Act, –– Amendment of section 38 of (i) in sub-section (1), for the words “an auto-generated statement”, the Mah. XLIII words “a statement” shall be substituted; of 2017. (ii) in sub-section (2), –– (a) for the words “auto-generated statement under”, the words “statement referred in” shall be substituted ; (b) in clause (a), the word “and” shall be deleted ; (c) in clause (b), after the words “ by the recipient, ”, the word “including” shall be inserted ; (d) after clause (b), the following clause shall be inserted, namely: – “(c) such other details as may be prescribed. ”. 9. In section 39 of the principal Act, in sub-section (1), for the words “and Amendment of within such time”, the words “within such time, and subject to such conditions section 39 of Mah. XLIII and restrictions” shall be substituted. of 2017. 10. In section 107 of the principal Act, in sub-section (6), for the proviso, the Amendment of following proviso shall be substituted, namely : –– section 107 of Mah. XLIII of “Provided that in case of any order demanding penalty without involving 2017. demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said penalty has been paid by the appellant.”. 11. In section 112 of principal Act, in sub-section (8), the following proviso Amendment of shall be inserted, namely : –– section 112 of Mah. XLIII of “Provided that in case of any order demanding penalty without involving 2017. demand of any tax, no appeal shall be filed against such order unless a sum equal to ten per cent. of the said penalty, in addition to the amount payable under the proviso to sub-section (6) of section 107 has been paid by the appellant. ”. भााग आठ-५५–२4 महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ Insertion of new 12. After section 122A of the principal Act, the following section shall be section 122B in inserted, namely : — Mah. XLIII of 2017. “122B. Notwithstanding anything contained in this Act, where any Penalty for failure to person referred to in clause (b) of sub-section (1) of section 148A acts in comply contravention of the provisions of the said section, he shall, in addition to with track and any penalty under Chapter XV or the provisions of this Chapter, be liable trace to pay a penalty equal to an amount of one lakh rupees or ten per cent. of mechanism. the tax payable on such goods, whichever is higher. ”. Insertion of 13. After section 148 of the principal Act, the following section shall be new inserted, namely : –– section 148A in Mah. XLIII of 2017. Track “148A. (1) The Government may, on the recommendations of the and trace Council, by notification, specify, – mechanism (a) the goods; for certain goods. (b) persons or class of persons who are in possession or deal with such goods, to which the provisions of this section shall apply. (2) The Government may, in respect of the goods referred to in clause (a) of sub-section (1), –– (a) provide a system for enabling affixation of unique identification marking and for electronic storage and access of information contained therein, through such persons, as may be prescribed; and ; (b) prescribe the unique identification marking for such goods; including the information to be recorded therein. (3) The persons referred to in sub-section (1) shall,— (a) affix on the said goods or packages thereof, a unique identification marking, containing such information and in such manner; (b) furnish such information and details within such time and maintain such records or documents, in such form and manner; (c) furnish details of the machinery installed in the place of business of manufacture of such goods, including the identification, capacity, duration of operation and such other details or information, within such time and in such form and manner; (d) pay such amount in relation to the system referred to in sub-section (2), as may be prescribed.”. Amendment 14. In Schedule III of the principal Act, –– of Schedule (i) in paragraph 8, after clause (a), the following clause shall be III of Mah. inserted and shall be deemed to have been inserted with effect from the XLIII of 2017. 1st day of July 2017, namely : –– “(aa) Supply of goods warehoused in a Special Economic Zone or in a Free Trade Warehousing Zone to any person before clearance for exports or to the Domestic Tariff Area ; ”; (ii) in Explanation 2, after the words “For the purposes of”, the words, brackets and letter “clause (a) of” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July 2017 ;महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 5 (iii) after Explanation 2, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July 2017, namely : –– “Explanation 3. –– For the purposes of clause (aa) of paragraph 8, the expressions “Special Economic Zone”, “Free Trade Warehousing Zone” and “Domestic Tariff Area” shall have the same meanings respectively as assigned to them in section 2 of the Special Economic Zones Act, 2005. ”. 28 of 2005. 15. No refund shall be made of all such tax which has been collected, No refund of but which would not have been so collected, had section 14 been in force at all tax collected. material times. भााग आठ-५५–२अ6 महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 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, 2025 (7 of 2025). 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 is expedient to amend the Maharashtra Goods and Services Tax Act, 2017. 2. The salient features of the proposed amendments are as follows: - (i) to amend clause (61) of section 2, to explicitly include inter-state Reverse Charge Mechanism (RCM) transactions under the Input Service Distributor (ISD) mechanism by including reference to supplies subject to tax under sub-section (3) and (4) of section 5 of the Integrated Goods and Services Tax Act, 2017 ; (ii) to amend sub-clause (c) of clause (69) of section 2, to insert an Explanation to provide for definitions of the terms ‘Local Fund’ and ‘ Municipal Fund ’ ; (iii) to insert a new clause (116A) in section 2, to provide definition of Unique Identification Marking for implementation of Track and Trace Mechanism; (iv) to delete sub-section (4) of section 12 and sub-section (4) of section 13, to remove the provision for time of supply in respect of transaction in vouchers, the same being neither supply of goods nor supply of services ; (v) to amend clause (d) of sub-section (5) of section 17, with retrospective effect from 1st July 2017 ; (vi) to amend sub-sections (1) and (2) of section 20, to clearly include inter-state Reverse Charge Mechanism (RCM) transactions under the Input Service Distributor (ISD) system by referring to supplies taxable under sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act, 2017 ; (vii) to amend sub-section (2) of section 34, to explicitly provide for requirement of reversal of corresponding input tax credit in respect of a credit-note, if availed, by the registered recipient, for the purpose of reduction of tax liability of the supplier in respect of the said credit note. It further seeks to remove the condition in the said proviso of not having passed the incidence of interest on supply for the purpose of reduction of tax liability of the supplier in respect of the said credit note ; (viii) to amend sub-sections (1) and (2) of section 38, to remove the term “auto-generated” in relation to the statement of input tax credit ; (ix) to amend sub-section (1) of section 39, so as to provide for an enabling clause to prescribe conditions and restriction for filing of return under the said sub-section ;महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 7 (x) to amend the proviso to sub-section (6) of section 107, for providing payment of pre-deposit at ten per cent. instead of twenty five per cent. for filing appeals before Appellate Authority in cases involving only demand of penalty without involving the demand of tax ; (xi) to insert a new proviso to sub-section (8) of section 112, to provide for payment of pre-deposit at ten per cent. for filing appeals before Appellate Tribunal in cases involving only demand of penalty without involving the demand of tax ; (xii) to insert section 122B, to provide penalty for contraventions of provisions related to the Track and Trace Mechanism provided under section 148A ; (xiii) to insert section 148A, as an enabling provision to empower the Government to enforce the Track and Trace Mechanism for specified evasion prone commodities ; (xiv) to amend Schedule III, with retrospective effect from 1st July 2017,— (a) by inserting a new clause (aa) in paragraph 8 of Schedule III, to provide that the supply of goods warehoused in a Special Economic Zone or in a Free Trade Warehousing Zone to any person before clearance for exports or to the Domestic Tariff Area shall be treated neither as supply of goods nor as supply of services ; (b) to amend Explanation 2, to clarify that the said explanation would be applicable in respect of clause (a) of paragraph 8 of the said Schedule; (c) to add Explanation 3 to define the terms ‘Special Economic Zone’, ‘Free Trade Warehousing Zone’ and ‘Domestic Tariff Area’, for the purpose of the proposed clause (aa) in paragraph 8 of said Schedule. 3. The Bill seeks to achieve the above objectives. Mumbai, AJIT PAWAR, Dated the 2nd July 2025. Deputy Chief Minister (Finance).8 महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ MEMORANDUM REGARDING DELEGATED LEGISLATION The Bill involves the following proposals for delegation of legislative powers, namely :— Clause 1 (2).— Under this clause, power is taken to the State Government, to bring into force the remaining sections of this 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 13.— Under this clause, which seeks to insert section 148A in the said Act, power is taken to the State Government,— (i) in sub-clause (1) to specify, by notification the applicability of this section to goods or persons; (ii) in sub-clause (2) to prescribe a system for enabling affixation of unique identification marking and for electronic storage and access of information contained therein, through such persons. (iii) in sub-clause (3) to prescribe,— (a) the information and manner of affixing unique identification marking on the goods or packages ; (b) form and manner of furnishing information and details, within such time; (c) form and manner of furnishing details of machinery installed in the place of business and such other details or information; (d) amount to be paid in relation to system for enabling affixation of unique identification marking. 2. The above-mentioned proposals for delegation of legislative power are of normal character.महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 9 FINANCIAL MEMORANDUM In order to implement the decisions taken by the Goods and Services Tax Council 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), certain amendments are made in various sections of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017). There is no provision in the Bill which would involve the recurring or non- recurring expenditure from the Consolidated Fund of the State on its enactment as an Act of the State Legislature. 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.

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