Maharashtra Cabinet Clears GST Amendment Bill, Expands PSU Tax Settlement Scheme
The Maharashtra Cabinet has approved the draft of the Maharashtra Goods and Services Tax (Amendment) Bill, 2025, which will be tabled in the upcoming session of the state legislature. The amendment seeks to bring the state’s GST Act in line with recent changes made by the Central Government to the Central Goods and Services Tax (CGST) Act, 2017, following recommendations from the 55th GST Council meeting.
The Central Government passed the Finance Act, 2025 on March 29, 2025, which includes various changes to the CGST Act and Schedule III. To maintain uniformity and operational consistency, the state government is now amending the Maharashtra GST Act, 2017 accordingly.
A senior official from the state finance department highlighted the challenges faced by small traders, who often struggle with GST compliance. "Out of the 16 lakh traders in the state, over 13 lakh are small business owners unfamiliar with GST filing. They often rely on accountants, who may inadvertently make errors, leading to complications. These amendments are aimed at addressing such concerns," the official explained.
The official also noted that Maharashtra earns approximately ₹2.5 lakh crore annually through GST collections.
Cabinet Also Approves Draft Amendment Bill for Settlement of Tax Arrears from PSUs
In another significant decision, the cabinet approved the draft of the Maharashtra Tax, Interest, Penalty or Late Fee (Settlement of Arrears by Public Sector Undertakings) (Amendment) Bill, 2025, for presentation in the upcoming legislative session.
The amendment pertains to an earlier act enforced on March 21, 2025, which allows settlement of pending tax arrears, interest, penalties, or late fees owed by public sector undertakings (PSUs) under various tax laws. The settlement scheme is valid until December 31, 2025.
The amendment will expand the definition of "applicant" to include public sector companies, banks, government institutions, departments, authorities, corporations, and local bodies that are not registered under the Companies Act, 2013, but have been established through resolutions or legislations passed by the central or state legislatures.
This change is expected to enable resolution of long-pending revenue recovery cases and bring in significant revenue that has been delayed for years. The government anticipates that these settlements will help recover substantial dues and close unresolved cases.
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