Maharashtra Govt Tables GST Amendment Bill Aligned with Centre’s Finance Act 2025

On July 3, 2025, the Maharashtra government, led by Chief Minister Devendra Fadnavis, introduced the Maharashtra Goods and Services Tax (Amendment) Bill, 2025, in the state legislative assembly. This is to harmonize the State's GST Act with the Central Goods and Services Tax (CGST) Act, following recent amendments enacted through the Finance Act, 2025.

According to the PTI Reports, Minister of State for Finance, Ashish Jaiswal, presented the bill, explaining its role in ensuring uniformity between central and state GST laws. "The amendments aim to bring uniformity between the central and state GST laws, thereby enabling more streamlined, transparent, and taxpayer-friendly services," he stated.

The proposed amendments encompass 13 key changes, including provisions related to input service distributors, time of supply, distribution of input tax credit, simplification of the appeals process, and tracking and tracing mechanisms. Notably, updates are proposed concerning the supply of specific goods and services, particularly for Special Economic Zones (SEZs) and Free Trade Warehousing Zones (FTWZs).

A huge relief measure within the bill stipulates that taxpayers filing appeals involving only penalty demands will be required to pre-deposit only 10% of the disputed amount. This is to alleviate the financial burden on small businesses and individual taxpayers during the appeals process.

The state government's initiative follows the central government's enactment of the Finance Act, 2025, which introduced substantial amendments to the CGST Act, 2017. These changes were based on recommendations from the 55th GST Council meeting and were officially notified on March 29, 2025.

In anticipation of these developments, the Maharashtra Cabinet had approved the draft of the amendment bill in June, preparing for its introduction during the monsoon session of the legislature. The cabinet also cleared the draft of the Maharashtra Tax, Interest, Penalty or Late Fee (Settlement of Arrears by Public Sector Undertakings) (Amendment) Bill, 2025, aiming to expedite the recovery of long-pending tax arrears from public sector entities.

The introduction of the GST amendment bill is part of a broader legislative agenda during the monsoon session, where the government plans to present 14 bills, including the Maharashtra Special Public Security Bill, 2025. Chief Minister Fadnavis has affirmed the government's commitment to a full three-week session, despite anticipated opposition challenges.

As the bill progresses through the legislative process, it is expected that these amendments will increase the efficiency of the GST in Maharashtra, concurring it more closely with national standards and improving the overall taxpayer experience.

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