Maharashtra Vat Amnesty Scheme: The Deputy Chief Minister of the finance and planning department introduced a new scheme for the GST department named Amnesty Scheme 2022. This scheme was introduced during the announcement of the annual budget 2022-23. The Maharashtra Settlement of Arrears of Tax, Interest, Penalty, or late Fee scheme 2022 will be in effect from April 1 to September 30, 2022.
GST Amnesty Scheme Maharashtra 2022
Ajit Pawar, the Deputy Chief Minister of Maharashtra state introduced a revenue-deficit budget. This scheme is proposing an amnesty program for GST payers and a cut in the VAT on natural gas, among other tax concessions. The provision of Rs. 1,50,000 crore has been made for the execution of this annual plan, announced by Pawar, the Deputy Chief Minister of the finance and planning department. Revenue receipts are expected to be Rs. 4,03,427 crore, with revenue expenditure at Rs 4,27,780 crore, according to the budget estimates.
According to this plan, if the arrears are less than Rs. 10,ooo per year, the arrears will be completely waived. In this way, in nearly 1 lakh situations, small dealers will gain. Dealers with arrears of up to Rs. 10 Lakh or less will pay a 20 percent lump-sum online. In this way, about 2.20 lakh cases will benefit medium dealers.
Maharashtra VAT Amnesty scheme 2022
Although, there would be an estimated revenue deficit of Rs. 24353 core. According to the updated estimate, tax receipts for the fiscal year 2021-22 will be rs.2, 75498 crores. GST, VAT, Central Sales Tax, Professional Tax, and other key taxes are included in the updated estimate of Rs. 1,55,307 crore. The finance minister said that an amnesty scheme for GST arrears is dubbed the ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee scheme. 2022, would be implemented.
Official Announcement of Maharashtra VAT Amnesty Scheme 2022
Scheme for GST Department
- according to revised estimates for the fiscal year 2021-22, the state’s tax income will be Rs two lakh seventy-five thousand four hundred eight crores. This includes revised projections for the Goods and Services Tax (GST), Value Added Tax 9VAT), Central Sales Tax (CST). Profession Tax (PT), and other relevant taxes totaling rupees one lakh fifty-five thousand three hundred seven crores.
- Following the global pandemic of Covid-19, the state economy is slowly recovering but on the other hand, the current Russia Ukraine conflict is wreaking havoc on the global economy, which will inevitably harm agriculture, manufacturing, and the service sector in our state. Therefore, meeting the revised estimates will be difficult. Regardless, the government will make serious efforts to meet the amended income collection objective.
- To provide relief to the common citizen, the industry, and business, I propose the following measures in various sectors:—
I propose Amnesty Scheme, for Goods and Services Tax Department. This Amnesty Scheme will be called as “Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme-2022”.
This Scheme is applicable regarding concessions on various taxes levied by Sales Tax Department before introduction of GST Act and duration of this Amnesty Scheme will be from April 1, 2022 to September 30, 2022.
Reduction of VAT rate on Natural Gas Increase in period for adjustment of stamp dutyStamp Duty exemption on Gift deeds without consideration to corporations and institutions.
- I am completely waiving off the arrears in cases where arrears are Rs. 10,000 or less per year as per any statutory order passed under the various tax laws implemented by the department. As a result small dealers will be benefited in almost one lakh cases by this relief.
Dealers having arrears as on the 1st April 2022 up to Rs. 10 lakhs or less as raised in the statutory orders will have the option to pay a lump sum amount of 20 per cent of the total arrears instead of calculating the amounts payable on account of undisputed tax, disputed tax, interest, penalty as per the proportions provided in the Scheme. On payment of lump sum amount of 20%, waiver will be granted to the remaining 80 per cent of the arrears. As a result medium dealers will be benefited in almost two lakh and twenty thousand cases.
- Environment friendly Natural Gas is largely used for domestic piped gas and CNG powered motor vehicles, auto rickshaws, taxis and private vehicles. It is proposed to reduce the rate of value added tax on natural gas from 13.5 percent to 3 percent to encourage the use of environment friendly natural gas and to provide relief to the citizens. As a result, the State may incure a revenue reduction of about rupees 800 Crore.
- With the view to incentivize the construction business, time period in which stamp duty paid on earlier deed to be adjusted against subsequent deed, is increased from one year to three years as per the provision of article 5 (g-a) (ii) of Maharashtra Stamp Act.
- If any donor is transferring land without consideration to the corporations, local self-governing bodies under jurisdiction of State of Maharashtra free of cost, then current Stamp Duty of 3 percent on gift deed or 5 percent on sale deed is being fully exempted under Section 9 of the Maharashtra Stamp Act. As a result, the State may incure a revenue reduction of about rupees 21 Crore.
Stamp Duty Amnesty Scheme 2022
Amnesty Scheme under Stamp Act is proposed from 1st April 2022 to 30th November, 2022 for pending penalty dues. Due to this concession under Amnesty Scheme 2022, there will be a shortfall of rupees 1500 Crores out of outstanding penalty dues.
To give impetus to the Gold and Silver jewelry industry, refineries, and exports and to generate employment in the State and curb tax evasion, it is proposed to waive the current Stamp Duty of 0.1 percent levied under the Maharashtra Stamp Act on gold-silver delivery order documents imported into the State of Maharashtra. Due to the above tax concession, there will be a revenue shortfall of around rupees 100 Crores.
In order to promote water transport in the State, the tax levied by the Maharashtra Maritime Board on passengers as well as pets, vehicles, goods etc. traveling by ferries and Ro-Ro boats operating on newly launched waterways from 1st January 2022 under the jurisdiction of the Maharashtra Maritime Board, is being waived for three years.
I am hopeful that all the Honourable Members of this August House will support to my proposals.
Jai Hind ! Jai Maharashtra !!