Maharashtra Government issues Clarifications regarding VAT on Natural gas

Nov 14, 2018 | by Avantis RegTech Legal Research Team

The Government of Maharashtra, on November 13, 2018 has issued clarifications regarding Value Added Tax (VAT) on Natural gas.

The Government on receiving queries on various issues pertaining to taxability of natural gas under Maharashtra Value Added Tax Act, 2002, has issued the following clarification:

·         Query 1: A dealer holds a single VAT registration but has multiple GST registrations in Maharashtra. Whether certificate in Proforma  ‘A’ is necessary for all such places of business (POBs) in the state or only a single Proforma A would be sufficient?

Clarification: In case, purchasing manufacturer is having a single VAT registration but multiple GST registrations for his multiple POBs in the state, he may apply for proforma ‘A’ to the Joint Commissioner in whose jurisdiction, the principal POB, as per VAT RC, falls. Benefit of schedule entry B-16 is available only if the purchaser uses the natural gas as a raw material or as a fuel in manufacture of goods.

In case, all such POBs fall within the jurisdiction of such Joint Commissioner, then he shall issue a single certificate in Proforma ‘A’. In this Proforma ‘A’, he shall denote only those POBs, at which the conditions of entry B-16 are complied.

In case, some of such POBs fall within the jurisdiction of some other Joint Commissioner, then the Joint Commissioner, having jurisdiction over the principal POB shall call for a report from those other Joint Commissioners, immediately. After receipt of such reports, Joint Commissioner shall issue a certificate in proforma ‘A’ denoting the eligible POBs.

·         Query 2: Purchaser, having a single POB, holds single VAT registration but has obtained multiple meters from the natural gas company i.e/ GAIL, MGL, etc. Gas supplying company issues separate invoices as per meter numbers. Whether only a single proforma ‘A’ should be obtained or whether separate proforma ‘A’ should be obtained qua- meter?

Clarification: In this situation, the purchaser may obtain proforma ‘A’ for the meters, in respect of which the gas is being used for purposes mentioned in entry B-16. Joint Commissioner shall also denote eligible gas meter numbers in proforma ‘A’.     


·         Query 3: Purchaser has multiple POBs in Maharashtra but the manufacturing activity carried out only at some POBs. Whether, proforma ‘A’ can be obtained for all POBs?

Clarification: As stated earlier, only a single proforma ‘A’ shall be issued in this case. Proforma ‘A’ can be obtained only for such POBs, at which the natural gas so purchased is put to permissible use, as per entry B-16.


·         Query 4: Before 1st July 2017, a dealer was registered only for Service Tax but was not registered under MVAT Act, because it was not liable being only a service provider etc.

Clarification: Entry B-16 requires that the natural gas purchased should be used as a raw material or fuel in manufacture of goods.

[Trade Circular No. 32T of 2018]




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