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Maharashtra State Budget proposes amnesty scheme for tax dues other than GST
This Tax Alert summarizes indirect tax related proposals made in the recent Maharashtra State Budget 2023-24 dated 9 March 2023.
The key highlights are:
Amnesty scheme for various taxes levied before introduction of Goods and Services Tax (GST)
- An amnesty scheme called “Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023” is proposed in respect of various laws implemented by the State Tax department before introduction of GST law.
- The duration of the scheme will be from 1 May 2023 to 31 October 2023 and shall apply to the arrears pending as on 1 May 2023.
- Complete waiver is proposed in cases where the arrears for any year are up to INR2 lakhs. This is likely to benefit small dealers in almost one lakh cases.
- Dealers having arrears up to INR50 lakhs as per the statutory orders will have to pay 20% of the total arrears and balance 80% will be waived. It is expected that medium dealers in 80,000 cases will be benefitted.
Details of the scheme along with necessary guidelines are expected to be issued shortly.
A similar amnesty scheme called “Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2022” was enacted last year pursuant to the State Budget 2022-23 presented on 11 March 2022.
Tax concession on Aviation Turbine Fuel (ATF)
- With a view to encourage air transport and to accelerate economic growth, Value Added Tax (VAT) on ATF is proposed to be reduced from 25% to 18% in Mumbai, Pune and Raigad districts.