The Value Added Tax (VAT) Amnesty Scheme was introduced from 1st May 2023 to 31st October 2023 as part of the Maharashtra Government’s budget 2023, which was presented on March 9th, 2023.
According to the budget, the Amnesty Scheme will be called ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023’. This Scheme is applicable on various taxes levied by the GST Department before introduction of the GST Act and the duration of this Amnesty Scheme will be from May 1, 2023 to October 31, 2023.
It stated complete waiver of the arrears in cases where arrears are Rs. 2,00,000/- or less per year. As a result small dealers will be benefited in around one lakh cases.
Dealers who have unpaid arrears of up to Rs. 50 lakhs or less will only be required to pay 20% of the total amount, with the remaining 80% being waived. As a result, in almost 80,000 cases, medium dealers will benefit.
The Maharashtra State BJP Cell of Chartered Accountants (CA) submitted a proposal before the state government for a VAT Amnesty scheme for the waiver of tax, interest, and penalty on 4th March 2023.
According to the proposal, the government will profit since the extension of the MVAT amnesty scheme through July 31, 2023 will bring in significant financial benefits for the Maharashtra government.
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