Deemed Assessment under MP VAT What Fuel Retailers Must Know for FY 2023–24
The deemed assessment for fuel retailers under MP VAT for FY 2023–24 has been notified by the Madhya Pradesh Commercial Tax Department. This automatic assessment aims to reduce compliance burdens for eligible dealers dealing in petrol and diesel, especially those covered under specific VAT and CST provisions.
Let’s break down the key points you must know.
What is Deemed Assessment?
- Deemed assessment means assessment without physical verification or audit.
- This applies only to eligible dealers as notified.
Who is Covered?
✅ Petrol and Diesel Retailers
✅ Registered under MP VAT Act, 2002 and CST Act, 1956
✅ Who have filed all returns up to FY 2023–24 on time
✅ With no pending tax, interest, or penalty dues
✅ Whose details match with department records (including e-transactions)
Key Notification Details
| Parameter | Details |
|---|---|
| Authority | Commissioner, Commercial Tax, Madhya Pradesh |
| Notification Date | June 2025 |
| Period Covered | FY 2023–24 |
| Acts Involved | MP VAT Act, CST Act |
| Mode | Auto-generated assessment order on department portal |
📌 Dealers must verify assessment orders online. No physical order will be sent.
Conditions for Deemed Assessment
- No mismatch in sales or purchase figures
- No proceedings pending under Sections 18, 20, or 21 of MP VAT Act
- Applicable to fuel dealers not claiming refunds or adjustments
Steps to Comply
- Login to the MP Commercial Tax Portal
- Go to Deemed Assessment Section
- Download & verify auto-generated order
- If any discrepancy, file for rectification within 30 days
- Maintain records for future scrutiny (if any)
Legal Reference
- Notification issued under Rule 6 of MP VAT Rules
- Linked to powers under Section 18(4) of the MP VAT Act, 2002
- Aligns with ease-of-doing-business reforms under state policy
📄 View official notification here (mp.gov.in)
Expert View from Efiletax
“Fuel retailers often struggle with VAT assessments despite being fully compliant. This deemed assessment offers a relief window—but only if your filings are perfect. We advise keeping reconciliation reports and stock records ready, even if assessment is deemed.”
— Tax Consultant, Efiletax Team
Why This Matters
- Saves time for compliant fuel retailers
- Reduces unnecessary visits and scrutiny
- Boosts departmental efficiency via automation
- Encourages timely return filing culture
Frequently Asked Questions (FAQ)
Q1: Do I need to respond to the deemed assessment notice?
A: No response is required if the assessment is correct. Just download and retain it.
Q2: What if there’s a mismatch in figures?
A: You must apply for rectification within 30 days of the order generation.
Q3: Does this apply to all VAT dealers?
A: No, only to petrol/diesel retailers meeting specific conditions under the MP VAT Act.
Summary
Deemed assessment under MP VAT for FY 2023–24 allows fuel retailers to get auto-generated orders if returns are filed correctly. No manual scrutiny unless errors arise.