Maharashtra State Budget 2017-18: In this Article, we shall go through the major changes in the Maharashtra VAT Act and Profession Tax Act vide Maharashtra State Budget for FY 2017-18. First Highlight of the Budget is the change in MVAT rates for the following items. Now check more details for “Key Highlights of Maharashtra State Budget for FY 2017-18” from below…

Following Goods have been exempted from levy of MVAT.

Name of CommoditySchedule Entry NumberPrevious Rate of TaxCurrent Rate of Tax

MVAT won’t be charged on the following items: –

  1. Geo membrane necessary for Farm Pond
  2. Soil Testing Kit
  3. Milk Testing Kit
  4. Card Swipe Machines
  5. Gas & Electric Incinerators

Second Highlight of the Budget is from GST Perspective as follows: –

  1. Octroi and Local Body Tax will be abolished with the introduction of GST.
  2. From GST perspective, transactions within twelve nautical miles from the coastline will be deemed to be intra-state supplies.

Third Highlight of the Budget is about the proposals under Maharashtra VAT Act, 2002

  1. 1A mandatory and fixed part payment of 10 per cent of the disputed tax with the maximum limit of Rs. 15 crores has been fixed, which the appellant can adjust against his dues subsequently.
  2. The time limit to file appeals under VAT to the High court against the decision of Tribunal is proposed to be increased to 180 days from 120 days.
  3. Dues having a charge on the property of the dealer shall be deemed to have been created on the date mentioned on the demand notice. Any outstanding dues can be recovered from the directors of private company. Thus, private company and its directors will be jointly and severally liable.
  4. Time limit for interest on refund of MVAT is reduced to 60 days from 90 days.
  5. If on account of technical problems in the automation system, the dealer is not able to make e-payment of tax on time, the state government is empowered to waive such interest.
  6. Proposal is also mooted to exempt interest (to some extent) and penalty on liability for the unregistered period in case the said dealer goes for registration under VAT act and pays the liability for unregistered period.

Fourth Highlight of the Budget is about the proposals under Profession Tax Act


  • Tax liability of persons who applies for late registration (PTRC/PTEC) has been proposed to be reduced to 4 years from the erstwhile period of 8 years.
  • Interest rates are to be aligned with interest rates under VAT.
  • Exemption on late fees is proposed on filing returns for all the dealers who file their pending returns upto 30th Sept 2017.
  • Dealers not registered under MVAT act but holding service tax no. shall also be liable to obtain PTEC no.

Author : CMA Prashant Vaze

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