Maharashtra Goods and Services Tax (Amendment) Ordinance, 2018

Oct 15, 2018 | by Avantis RegTech Legal Research Team


The Governor of Maharashtra on October 13, 2018 has published the Maharashtra Goods and Services Tax (Amendment) Ordinance, 2018 to further amend the Maharashtra Goods and Services Tax Act, 2017.

Some of the major amendments in theMaharashtra Goods and Services Tax Act, 2017 are as under:

·         In section 7 which specifies scope of supply under the heading Levy and collection of tax, with effect from July 1, 2017:

 (a) in sub-section (1):

(i)      in clause (b), after the words “or furtherance of business ; ” the word “and” shall be inserted and shall always be deemed to have been inserted ;

(ii)    in clause (c), after the words “a consideration” the word “and” shall be deleted and shall always be deemed to have been deleted ;

(iii)   clause (d) shall be deleted and shall always be deemed to have been deleted ;

(b) After sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely : ––

(1A) Where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.” ;

·         In section 9 which specifies the provisions for Levy and Collection of the principal Act, for sub-section (4), the following sub-section shall be substituted, namely:

(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both.

·         In section 10 of the principal Act, —

(a) in sub-section (1),—

(i)      for the words “in lieu of the tax payable by him, an amount calculated at such rate” the words, brackets and figures “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate” shall be substituted;

(ii)    in the proviso, for the words “one crore rupees” the words “one crore and fifty lakh rupees” shall be substituted;

(iii)   after the proviso, the following proviso shall be inserted, namely:– “Provided further that, a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.”;

(b) in sub-section (2), for clause (a), the following clause shall be substituted, namely: 

“(a) save as provided in sub-section (1), he is not engaged in the supply of services;”.

·         In section 16 which specifies the Eligibility and conditions for taking input tax credit, in sub-section (2),––

In clause (b), for the Explanation, the following Explanation shall be substituted, namely:— “Explanation.—For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services––

(i)      where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise;

(ii)    where the services are provided by the supplier to any person on the direction of and on account of such registered person.”;

·         In section 22 which specifies the persons who are liable for registration

                                                                           i.      In sub-section (1), after the proviso, the following proviso shall be inserted, namely:

“Provided further that, the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.”;

                                                                         ii.       in the Explanation, in clause (iii), after the word “Constitution” the words “except the State of Jammu and Kashmir and the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.

·         In section 25 which specifies the procedure for registration:

                                                                           i.      in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted, namely:

“Provided further that, a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State.”;

                                                                         ii.      in sub-section (2), for the proviso, the following proviso shall be substituted, namely:

“Provided that, a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.”.

·         In section 39 which specifies the provisions regarding furnishing of returns:

 (a) in sub-section (1):

(i)      for the words “ in such form and manner as may be prescribed ” the words “ in such form, manner and within such time as may be prescribed ” shall be substituted ;

(ii)    the words “on or before the twentieth day of the month succeeding such calendar month or part thereof ” shall be deleted ;

(iii)   the following proviso shall be inserted, namely :

 “Provided that, the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.”;

(b) in sub-section (7), the following proviso shall be inserted, namely:

 “Provided that, the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein.”;

(c) in sub-section (9),––

(i)      for the words “in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed” the words “in such form and manner as may be prescribed” shall be substituted;

(ii)    in the proviso, for the words “the end of the financial year” the words “the end of the financial year to which such details pertain” shall be substituted.

·         After Section 43, Section 43A shall be inserted which specifies the Procedure for furnishing return and availing input tax credit.

·         After Section 49, Section 49A shall be inserted which specifies Utilisation of input tax credit subject to certain conditions and Section 49B which specifies Order of utilization of input tax credit.

 

URL:https://mahagst.gov.in/sites/default/files/notification/%28ENGLISH%29Maharashtra%20Goods%20and%20Services%20Tax%20%28Amendment%29%20Ordinance%2C%202018%20%28Mah.%20Ord.%20XXII%20of%202018%29%2C%28ENGLISH%29.pdf


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