Salient features of Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Ordinance, 2019 and its procedural aspects related to various Acts administered by the Maharashtra Goods and Services Tax Department.
Office of the
Commissioner of State Tax,
(GST), Maharashtra State,
8th floor, GST Bhavan,
Dated the 08th March, 2019
- Trade Circular No. 9T of 2019
- Subject: Settlement of Arrears of Tax, Interest, Penalty or Late fee under various Acts administered by the Maharashtra Goods and Services Tax Department.
- Ref.: The Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Ordinance, 2019 (Mah. Ord. No. V of 2019 dated 6th March 2019)
- 1. Introduction: The Goods and Services Tax Act (GST) has come into force in India with effect from the 1st July 2017. This new taxation system is now stabilizing. The VAT (other than 6 goods on which VAT is levied presently), Entry Tax, and Luxury Tax etc. that were existing as on 30th June 2017 are subsumed under the GST. To meet the challenges of GST and focus on its implementation, the Department is planning to complete the pending work under the existing laws at earliest. For this, the Government, has taken series of legislative steps like risk based criteria for selection of cases for assessment, criteria for dropping of certain pending assessment proceedings, allowing rectification of the assessment order where set-off is disallowed due to non-confirmation etc.
- 2. Administrative steps are also taken to provide ease in cross-checking of set-off claim and other assessment and appeal related issues. In furtherance of these legislative and administrative steps the Hon’ble Finance Minister in his Budget Speech delivered on 27th February 2019 has made an announcement for settlement of arrears of tax, interest, penalty or late fee under various Acts administered by the Maharashtra Goods and Services Tax Department (hereinafter referred to as “MGSTD”). In order to give effect to the Budget announcement an Ordinance is promulgated on 6th March, 2019. The said Ordinance No. V of 2019 has now been published in the Maharashtra Government Gazette, Part-VIII. Extra-ordinary No. 15 dated the 6th March 2019. The Ordinance so promulgated is titled as “the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Ordinance, 2019 (hereinafter referred to as the “Ordinance”). This Ordinance is effective from the 6th March 2019.
3. Salient features of the Settlement Ordinance and its procedural aspects are explained below:-
- 3.1. Applicability of Settlement Ordinance:-
- (1) This Ordinance shall be applicable in respect of the arrears of tax, interest, penalty or, as the case may be, late fee under various Acts administered by the MGSTD and the rules made or notifications issued under these Relevant Act.
- (2) In the Ordinance these Acts are referred to as the “Relevant Act” [See section 2(1)(k)], these are as under:-
- (a) the Central Sales Tax Act, 1956;
- (b) the Bombay Sales of Motor Spirit Taxation Act, 1958 ;
- (c) the Bombay Sales Tax Act, 1959;
- (d) the Maharashtra Purchase Tax on Sugarcane Act, 1962 ;
- (e) the Maharashtra State Tax on Professions, Trades, Callings and Employment Act, 1975;
- (f) the Maharashtra Sales Tax on the Transfer of the Right to use any Goods for any Purpose Act, 1985;
- (g) the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987;
- (h) the Maharashtra Tax on Luxuries Act, 1987 ;
- (i) the Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act,1989;
- (j) the Maharashtra Tax on Entry of Goods into Local Areas Act, 2002, and
- (k) the Maharashtra Value Added Tax Act, 2002.
- (3) Arrears of tax, interest, penalty or late fee may be settled provided that these arrears pertains to the period ending on or before the 30th June 2017 and such arrears are as per any statutory orders, or the return dues or, as per audit report or otherwise, then in that respect the recovery outstanding as on 1st April 2019 shall only be considered as amount of arrears available for settlement. In other words, in respect of the aforesaid demand, in case, any amount is paid on or before the 31st March 2019, then the said amount shall not be considered as the requisite amount for the settlement of the arrears as per the provisions of the Ordinance.[See section 5(1)]
- (4) It may also be noted that sub-section (3) of section 5 provides that no arrears of tax, interest, penalty or late fee shall be settled under the Ordinance, in case the statutory orders are passed or the returns or the revised returns are filed after the 15th July 2019.
- (5) It may be noted that no waiver in respect of late fee payable by the assessee shall be available in respect of failure to file the return (for the period ending on or before the 30th June 2017) within the time limit specified in rule 17 of the MVAT Rules except for the returns in respect of the period ending on or before the 30th June 2017 and that are submitted between the period starting from the 1st April 2019 to the 31st July 2019. In other words, the complete waiver of late fee shall be available in respect of the returns for the period ending on or before 30th June 2017 and that are filed during the period starting from 1st April 2019 to and ending on 31st July 2019.
- 3.2. Time limit for submission of Application for Settlement and payment of the requisite amount: [See section 4]:
- (1) The Ordinance provides for the settlement of arrears of tax, interest, penalty or, late fee in TWO PHASES. First Phase will last for THREE MONTHS and the Second Phase for ONE MONTH. The First Phase provides slightly higher waiver in respect of disputed tax, interest and penalty as compared to the waiver available in Second Phase.
- (2) The duration for submission of application and time limit for payment of requisite amount shall be as given in the Table-1 below:
|Sr. No.||Particulars||First Phase||Second Phase|
|(1)||Time limit for payment of the requisite amount.||From the 01st April,2019 to 30th June,2019.||From the 01st July,2019 to 31st July,2019.|
|(2)||Duration for submission of application||From the 01st April,2019 to 30th June,2019.||From the 01st July,2019 to 31st July,2019|
Read Full Circular from here: Trade Circular No. 9T of 2019
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