Maharashtra Government grants refunds of the amount deposited by way of security deposit at the time of Voluntary Registration under Maharashtra Value Added Tax Act, 2002

Oct 11, 2018 | by Avantis RegTech Legal Research Team


The Government of Maharashtra on October 10, 2018 has issued a circular regarding the grant of refunds of the amount deposited by way of security deposit at the time of Voluntary Registration under Maharashtra Value Added Tax Act, 2002.

The Government of Maharashtra after the introduction of GST has made amendment to section 16 which specifies the terms and conditions for registration of Maharashtra Value Added Tax Act, 2002, vide MAHARASHTRA ACT No. XLII OF 2017, published in the Official Gazette, on May 29, 2017, a new sub-section (6A) is inserted. Amended sub-section (6A) provides that the dealer who has not effected sale of any goods specified in Schedule A or Schedule B as amended by the aforesaid Amendment Act, during the year 2016-17, then the registration of such dealer shall deemed to be cancelled with effect from July 1, 2017. As a result, in case of the dealers falling under aforesaid category, the registration certificates under the Maharashtra Value Added Tax Act, 2002 gets automatically cancelled with effect from the 1st July 2017.

A Trade Circular was issued on August 03, 2017 to explain the modalities and the time line within which the dealer has to make application for refund of the security deposit of Rs.25000/ paid at the time of obtaining the Voluntary Registration. After issuance of the Trade Circular, Government of Maharashtra has received representations stating therein hardship faced due to the deemed cancellation of MVAT registration and time required to make the application for the refund of the Rs. 25,000/- paid assecurity deposit. The representations so received are examined.

 

In order to overcome and mitigate the difficulties, the Government of Maharashtra issued vide Notification No.VAT-1518/ C.R. 33/Taxation-1 dated September19, 2018 to amend the Rule 60A by adding a new Sub-Rule (4) .The amended Sub-rule (4) are as under:

Notwithstanding anything contained in sub-rule (2) and clause (c) of sub-rule (3), where rupees 25,000 deposited as security deposit under the proviso to sub-section (2) of section 16 has not been refunded, then in such case the application for refund may be made on or before March 31, 2019 and the provisions of clause (a) and clause (b) of sub-rule (3) shall be applicable for such cases. ’’

 As a consequence to the amendment to rule 60A, the Trade Circular 34T of 2017stand modified to the extent as aforesaid.

 

[Trade Circular No. 26T of 2018]

 

URL:    https://mahagst.gov.in/sites/default/files/trade-circular/Trade%20Circular%2026%20T%20of%202018.pdf


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