Introduction
The GST Amendment Bill in Maharashtra was recently tabled to ensure uniformity between state and central GST provisions. With this move, the Maharashtra government is updating its SGST law to reflect recent changes made under the CGST Act, helping ensure seamless compliance for businesses operating across India.
Why Maharashtra Tabled the GST Amendment Bill
The 53rd GST Council Meeting held on 22 June 2024 recommended several legal changes. To implement these at the state level, each State GST Act must be amended. Maharashtra, being a major contributor to India’s GST revenue, is among the first to act.
Purpose of the amendment:
- Align State GST (SGST) law with changes made to Central GST (CGST) Act
- Simplify tax administration
- Enable uniform interpretation and enforcement across states
Key Changes Proposed in Maharashtra GST Amendment Bill
Here’s a breakdown of what’s changing:
| Provision | Change Introduced | Why It Matters |
|---|---|---|
| Section 10 (Composition Scheme) | Aligned with CGST amendment to include more service providers | Small businesses can now opt in |
| Section 16 (Input Tax Credit) | Restrictions on ITC further clarified | Reduces ITC misuse and litigation |
| Section 17(5) | Specific exclusions for ITC redefined | Impacts construction, vehicle-related ITC |
| Section 122, 132 | Penalty and prosecution clauses updated | Stricter action against fake invoicing |
| New Section (Post-Cancellation ITC Reversal) | Rule 88D codified in law | Ensures recovery of ITC after registration cancellation |
| Schedule III | Clarifications on what is not supply | Ensures clarity on high-seas sales, etc. |
Focus Keyphrase Subheading: GST Amendment Bill in Maharashtra
The GST Amendment Bill in Maharashtra closely mirrors changes made through the Finance Act 2024 and recent CBIC Circulars. For example:
- Rule 88D of CGST Rules (ITC mismatch recovery) is now reflected in state law
- Amendments support automation in GSTN (GST Network) compliance
- Aligns Maharashtra’s laws with changes introduced in Notification No. 38/2024 – Central Tax dated 26 June 2024
Legal References Behind the Changes
- CGST Act amendments made via Finance Act, 2024
- CBIC press release on 53rd GST Council Meeting
- Rule 88D introduced via Notification No. 38/2024-CT dated 26.06.2024
- GST Council Minutes recommending uniformity in Section 10, Section 16, and Schedule III across Centre and States
You can access official documents at www.cbic.gov.in
Expert View: What Should Businesses Do Now?
Tip from Tax Consultant at Efiletax:
“Businesses operating in multiple states, especially with branches or warehouses in Maharashtra, should review their ITC claims, composition eligibility, and vendor invoices now. These state-level amendments will tighten compliance and make defaults more visible to authorities.”
How This Amendment Helps Taxpayers
- Reduces disputes due to aligned CGST and SGST rules
- Eases compliance for pan-India businesses
- Improves transparency in audits and assessments
- Supports automation in GST filings and ITC matching
FAQs
Q1. Is this GST Amendment already applicable?
No. It’s currently tabled in the Maharashtra Legislative Assembly. Once passed and notified, the changes take legal effect.
Q2. Will other states also amend their GST laws?
Yes, most states follow GST Council recommendations and amend SGST Acts to match CGST updates.
Q3. Who should be most alert about these changes?
- Businesses under composition scheme
- Companies claiming high ITC
- Traders in real estate, automobile, and logistics sectors
Final Thoughts
The GST Amendment Bill in Maharashtra is more than a routine update. It reflects India’s larger goal: one nation, one tax — truly unified in law and implementation. With ITC scrutiny and fake invoicing on CBIC’s radar, this Bill is Maharashtra’s way of tightening the belt.
Stay ahead of GST changes.
👉 File your GST returns with Efiletax and ensure full compliance across states.
Summary
Maharashtra has tabled a GST Amendment Bill to align SGST with central GST laws. Key updates affect ITC, composition scheme, and penalties. Here’s what businesses need to know.