• Notification Date: 12-03-2022
• Notification No: N/A

Maharashtra FM Introduces GST Amnesty Scheme

The Deputy Chief Minister of Maharashtra, Ajit Pawar has presented a deficit in the revenue budget on Friday. The revenue deficit was discussed in the Legislative Assembly while announcing an amnesty scheme for the taxpayers under the Goods and Services Tax (GST).

Pawar holds a strong financial portfolio. While announcing the third budget of the Shiv Sena-NCP-Congress government in the Assembly, he said a new provision has been made for the annual plan. A provision for Rs.1,50,000 crore has been introduced by which the revenue receipts will amount to Rs.4,03,427 crore. The revenue expenditure is expected to be stagnant at the level of Rs.4,27,780 crore.

As a result, there would be a revenue deficit of Rs.24,353 crore. According to Pawar’s statement, the expected tax revenues for the financial year 2021-22 is Rs.2,75,498 crore as per the revised estimate. The amount includes the revised estimate of Rs.1,55,307 crore on account of GST, VAT, Central Sales Tax, Professional Tax as well as other taxes.

Hence, there would be an amnesty scheme for GST arrears. According to the statement of the Finance Minister, this scheme would be known as the ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme, 2022’.  The tenure of this new scheme would be valid from 1 April, 2022 to September 30, 2022. Under this new amnesty scheme, the medium-level dealers would be benefitted. The medium-level traders would be able to avail of the benefits in almost 2.2lakh cases under the new scheme.

Under this scheme, if a dealer pays 20 per cent of a certain amount, then a waiver will be granted for the remaining 80 per cent of arrears to the individual. There are several benefits available under this scheme. There will be a 3 per cent concession on stamp duty on gift deed, and another 5 per cent exemption will be available on the stamp duty on the sale deed. This will cost the exchequer about Rs.21 crore. The Budget document states that the reduction in the VAT on natural gas will result in a revenue loss of Rs.800 crore. In this situation, the amnesty scheme under stamp duty will cost the government with Rs.1,500 crore. Waiver of 0.1 per cent is offered on the delivery order documents of metals like gold and silver. This will eventually lead to a revenue shortfall of Rs.100 crore. Maharashtra Maritime Board had waived the tax imposed on the passengers along with the pets, vehicles, and goods that are travelling through ferry or Ro-Ro boats for consecutive three years. According to the statement of Pawar, the Budget especially prioritizes sectors like agriculture, health, human resources, transport, industry, culture, and tourism.