Harmonizing State and Central GST Regulations
The Maharashtra Legislative Council passed the Maharashtra Goods and Services Tax (Amendment) Bill on December 19, 2024, following its approval in the state assembly. While presenting the bill, Deputy Chief Minister Ajit Pawar emphasized the need for uniformity between state and central GST policies, supporting the “One Nation, One Tax” vision.
“This ordinance was passed in October to align both state and central policies. Since this is the first legislative session after its introduction, it is important to convert it into a bill,” Pawar mentioned.
Context of the Amendment
The state cabinet approved Maharashtra Goods and Services Tax (Amendment) Ordinance, 2024, dated September 23, 2024. It was outlined by the officials that the proceed was significant for maintaining consistency between the Central GST Act, 2017, and the Maharashtra GST Act, 2017.
Essential Features of the Bill
A government press release furnished before emphasized the provisions which are in the bill-
- Understanding Input Tax Credit (ITC)
- The provisions permitted the credited amount of Input tax towards the filed returns u/s 39 up to November 30, 2021, for fiscal years 2017-18 to 2020-21.
- Interest and Penalties Exemption:
- Conditional exemptions towards interest and penalties related to the specific demand notices for the Fiscal years 2017-18, 2018-19, and 2019-20.
Such amendments have the objective of lessening the issues of compliance for the taxpayers and facilitating the load on the state GST department.
Taxpayers Implications
The amendment is anticipated to ease the processes for businesses and facilitate compliance needs. Taxpayers who are dealing with historical problems like input tax credit claims or due demand notices may get the advantage through the provision.
Subsequent Steps
The bill with the approval of the legislative council is set to become law, ensuring the facilitated alignment of the GST framework of Maharashtra with the Central GST framework. Tax professionals along with businesses are motivated to examine the amendments to comprehend their implications.
The Maharashtra Goods and Services Tax (Amendment) Bill, 2024, by addressing challenges faced by taxpayers and introducing conditional relief measures has the motive to promote an environment good to taxpayers while supporting the GST principles.
