Date: 2025-07-03Category: Not ApplicableState: MaharashtraCountry: India
Part VIII, Ext. No. 56, L. A. BILL No. LXXIV OF 2025
A BILL to amend Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) Act, 2025. Thursday, 3rd July 2025.
**Executive Summary**
This document is the official publication of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) (Amendment and Validation) Bill, 2025 (L. A. Bill No. LXXIV of 2025) in the Maharashtra Government Gazette. The bill amends the 2025 Act to facilitate lump sum settlement of arrears, reduce litigation, and validate actions taken since March 21, 2025. It was introduced in the Maharashtra Legislative Assembly on July 3, 2025, and is deemed to have come into force on March 21, 2025.
**Key Points / Main Content**
* **Short Title and Commencement:**
* The Act is called the "Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) (Amendment and Validation) Act, 2025."
* It is deemed to have come into force on March 21, 2025.
* **Amendment to Short Title:**
* The phrase "(Payable by Public Sector Undertaking Companies)" is to be deleted from the short title of the principal Act.
* **Amendment to Definition of "applicant":**
* The definition of "applicant" is broadened to include Public Sector Undertaking Companies, Corporations, Public Sector Banks, Departments, Rural or Urban Local Bodies, or other Authorities, Enterprises, or Entities established under an Act of Parliament or State Legislature or by Government Resolution.
* The included entities must be liable to pay arrears of tax, interest, penalty, or late fee and desire settlement under the Act's conditions.
* **Validation:**
* Payments collected under the original Act from any applicant after its commencement are validated and deemed to have been duly paid, even if a court order exists to the contrary.
* No suits or proceedings can be maintained for refunding amounts received.
* No court can enforce decrees directing the refund of such amounts.
* **Statement of Objects and Reasons:**
* The amendment is intended to unlock outstanding dues of taxes, reduce pending litigation, and provide a lump sum payment option for settling arrears.
* It is proposed to amend clause (c) of sub-section (1) of section 2 of the Act.
**Impact Analysis**
**Stakeholder:** Public Sector Undertaking Companies, Corporations, Public Sector Banks, Departments, Rural or Urban Local Bodies, other Authorities, Enterprises and Entities liable for arrears
**Impact:**
* The amendments offer a framework for settling outstanding tax, interest, penalty, or late fee arrears via a lump sum payment option.
* The broadened definition of "applicant" allows a wider range of entities to take advantage of the settlement scheme.
* Validation clauses protect settlements made under the Act from legal challenges.
**Action Required:**
* Entities should assess their eligibility as applicants and determine whether to participate in the settlement scheme to resolve outstanding arrears.
* Entities should consult with legal counsel to understand the implications of the validation provisions on any existing legal disputes.
Key Entities Referenced
Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) Act, 2025: The principal Act being amended in this document. It pertains to the settlement of tax arrears, interest, penalties, or late fees payable by public sector undertaking companies.
Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) (Amendment and Validation) Bill, 2025: Bill to amend the principal Act. This Bill specifically targets arrears of tax, interest, penalty or late fee that are payable by Public Sector Undertaking Companies. It also includes validation provisions.
Maharashtra: The state to which this act applies.
RNI No. MAHENG /2009/35528
महाारााष्ट्रट शाासन रााजपत्र
असाधााराण भााग आठ
वर्षष ११, अंक २३(२)] गुरुवारा, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ [ पष्ृठ े6, किंकमं त : रुपये े२७.००
असाधााराण क्रमांक ५६
प्रााकिंधाकृत प्राकाशान
महाारााष्ट्र किंवधाानमंडळााचेे अकिंधाकिंनयेम व रााज्येपालैांनी प्राख्येाकिंपत केलैेलैे अध्येादेेशा व केलैेलैे
किंवकिंनयेम आकिंण किंवकिंधा 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 Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Payable
by Public Sector Undertaking Companies) (Amendment and Validation) Bill, 2025 (L. A. Bill No.
LXXIV 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. LXXIV OF 2025.
A BILL
to amend Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late
Fee (Payable by Public Sector Undertaking Companies) Act, 2025.
Mah. WHEREAS it is expedient to amend the Maharashtra Settlement
XVII of
of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector
2025.
Undertaking Companies) Act, 2025, for the purposes hereinafter appearing; it
is hereby enacted in the Seventy-sixth Year of the Republic of India as follows :–
1. (1) This Act may be called as the Maharashtra Settlement of Arrears Short title and
of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertaking commencement.
Companies) (Amendment and Validation) Act, 2025.
(2) It shall be deemed to have come into force on the 21st March 2025.
(१)
भााग आठ ५६–१2 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७
Amendment 2. In the Short title of the Maharashtra Settlement of Arrears of Tax, Mah.
of Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies) XVII of
Short title of 2025.
Act, 2025 (hereinafter referred to as “the principal Act”), the brackets and words
Mah. XVII of
2025. “(Payable by Public Sector Undertaking Companies)” shall be deleted.
Amendment 3. In section 2 of the principal Act, in sub-section (1), for clause (c), the
of section 2 of following clause shall be substituted, namely :–
Mah. XVII of
2025. “(c) “applicant” means a Public Sector Undertaking Companies,
Corporations, Public Sector Banks, Departments, Rural or Urban Local
Bodies, or other Authorities, Enterprises or Entities, which are established
under an Act of the Parliament or any State Legislature or by any
Government Resolution which is liable to pay arrears of tax, interest,
penalty or late fee levied or leviable under the Relevant Act and who
desires to avail the benefit of settlement by complying with the conditions
under this Act.”.
Validation. 4. Notwithstanding anything contained in the Maharashtra Settlement Mah.
of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector XVII of
2025.
Undertaking Companies) 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 or collected under the said Act from any applicant,
after the commencement of the said Act, 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 with effect from the 21st March 2025 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.महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 3
STATEMENT OF OBJECTS AND REASONS.
The Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late
Fee (Payable by Public Sector Undertaking Companies) 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 Public Sector Undertaking Companies which
are registered under the Companies Act, 2013.
2. There is a large amount of levy of tax being litigated 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 or State Acts or are constituted by
the Government Resolutions.
Therefore, in order to unlock the amount involved in the outstanding dues
of taxes and reduce the old pending litigations, the Government considers it
expedient to provide for lump sum payment option for settlement of arrears of
tax, interest, penalty or late fee and closure of old pending litigations of such
Authorities, Corporations, Departments, etc; which are willing to settle their
arrears by making such lump sum payments. It is, therefore, proposed to amend
clause (c) of sub-section (1) of section 2 of the said Act, suitably.
3. The Bill seeks to achieve the above objectives.
Mumbai, AJIT PAWAR,
Dated the 2nd July 2025. Deputy Chief Minister (Finance).
भााग आठ ५६–२4 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७
FINANCIAL MEMORANDUM
The Bill proposes to provide for settlement of arrears under various Acts
administered by the Department of Goods and Services Tax, Government of
Maharashtra, for the Corporations, Public Sector Banks, Departments, Rural
or Urban Local Bodies or other Authorities Enterprises or Entities. 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.महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७ 5
ANNEXURE TO THE L. A. BILL No. LXXIV OF 2025 –
THE MAHARASHTRA SETTLEMENT OF ARREARS OF TAX, INTEREST,
PENALTY OR LATE FEE (PAYABLE BY PUBLIC
SECTOR UNDERTAKING COMPANIES) (AMENDMENT AND
VALIDATION) BILL, 2025.
[Extracts from the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or
Late Fee (Payable by Public Sector Undertaking Companies) Act, 2025]
( Mah. XVII of 2025 )
1. This Act may be called the Maharashtra Settlement of Arrears of Tax, Short title.
Interest, Penalty or Late Fee (Payable by Public Sector Undertaking Companies)
Act, 2025.
2. (1) In this Act, unless the context otherwise requires,— Definitions.
(a) and (b) ** ** ** **
(c) “applicant” means a Public Sector Undertaking Company which is
liable to pay arrears of tax, interest, penalty or late fee levied or leviable
under the Relevant Act who desires to avail the benefit of settlement by
complying with the conditions under this Act.
Explanation.— The term “Public Sector Undertaking Company”
means any company registered as Government Company under the
Companies Act, 2013 ;
(d) to (s) ** ** ** **
3. to 20. ** ** ** **6 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, जुलैै ३, २०२५/आर्षाढ १२, शाके १९४७
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 (Payable by Public Sector Undertaking Companies) (Amendment and
Validation) Bill, 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.