Maha Cabinet clears draft GST (Amendment) Bill to be tabled during monsoon session

IANS June 24, 2025 332 views

The Maharashtra Cabinet has approved amendments to the state GST Act to match central revisions. The changes follow recommendations from the 55th GST Council meeting. A separate bill will address tax arrears settlement for public sector units. These moves aim to streamline tax administration and recover pending revenues.

"Necessary amendments ensure consistency between Central and Maharashtra GST Acts" – Government Release
Mumbai, June 24: Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday, gave its approval for the draft bill to amend the Maharashtra Goods and Services Tax Act 2017 and its introduction in the upcoming monsoon session of the legislature.

Key Points

1

Maharashtra GST Act amendments align with central changes

2

Monsoon session to table revised tax settlement bill

3

PSU arrears recovery period extended till December 2025

4

Amendments aim to resolve long-pending revenue cases

“The Central government has made changes in various sections and Schedule III of the Central Goods and Services Tax Act, 2017. Recommendations for this were made in the 55th meeting of the Goods and Services Tax Council. Accordingly, the Central government has passed the Finance Act, 2025 on 29 March 2025. In this context, it was necessary to make necessary amendments in the Maharashtra Goods and Services Tax Act, 2017, to maintain consistency and practicability in the provisions of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017,” said the government release.

The Cabinet also approved the introduction of the Maharashtra Goods and Services Tax (Amendment) Bill, 2025, in the ensuing monsoon session of the state legislature.

Further, the state Cabinet also approved the draft Maharashtra (Amendment) Bill, 2025 (Compromise of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertakings)) and cleared its presentation in the state legislature during the monsoon session of the state legislature.

“The Maharashtra Compromise of Arrears of Tax, Interest, Penalty or Late Fee (Payable by Public Sector Undertakings) Act, 2025, has come into force from March 21, 2025, for recovery of arrears under various Acts by the Goods and Services Tax Department. As per the provisions of this Act, the period for settlement of arrears is from March 21 to December 31 2025. The definition of applicant in this Act is to be amended so that Public Sector Companies, Public Sector Banks or Government Institutions, Departments, Authorities, Corporations, Rural and Urban Local Bodies which are not registered under the Companies Act 2013 but are established by the Legislature of the Centre or any State or Union Territory or by Government Resolution, will be included in it,” said the government release.

According to the release, this will close the old pending recovery cases by paying the settlement amount, and this will result in the receipt of revenue which has been pending for a long time by the government.

Reader Comments

R
Rajesh K.
Finally some action on GST amendments! The current system was creating too much confusion for small businesses like mine. Hope these changes simplify compliance 🤞 The focus on clearing pending cases is also welcome - will help improve ease of doing business in Maharashtra.
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Priya M.
Good move but implementation is key. Last time when GST was introduced, there was so much chaos. Government should conduct proper workshops for traders and provide simple guidelines in regional languages too. #GSTReforms
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Amit S.
Why always last minute decisions before sessions? These amendments should have been planned and discussed with stakeholders earlier. The monsoon session is already packed with important bills, rushing through GST changes may lead to oversight.
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Sunita R.
The inclusion of PSUs and government bodies in tax settlement is a positive step. Many pending cases were stuck because of bureaucratic delays. Hope this brings more transparency and efficiency in tax collection. 👍
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Vikram J.
As a CA, I welcome these amendments but request the government to provide detailed transitional provisions. Last minute changes create compliance nightmares for professionals and businesses alike. The devil is always in the details!
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Neha P.
Hope this leads to actual revenue collection rather than just being another announcement. Maharashtra's fiscal health needs improvement and proper tax implementation can help fund much-needed infrastructure projects across the state.

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Tags:
Maharashtra GST Devendra Fadnavis Monsoon Session Tax Amendment GST Council