Office of the

Commissioner of State Tax,

8th floor, GST Bhavan,

Mazgaon, Mumbai - 400 010,

Sub: Amendments in Maharashtra Value Added Tax Rules, 2005 (Rule 17 and Rule 41)

Ref: 1) Notification No. VAT-1519/CK-89/Taxation-1, dated the 8th August 2019.

2) Trade circular 49T Of 2019

3) Notification No. VAT- 1520/CK- 57/Taxation-1 dated the 8th July 2020.

4) Notification No. VAT-1521/C.R. 39/Taxation-1 dated the 20th April 2021.

Background:-

As per Notification cited above at serial (1) dated 8th August 2019, Rule 17 of Maharashtra Value Added Tax Rules. 2005 was amended and new sub-rule (4B) was introduced. This amendment was explained by Trade Circular 49T of 2019 cited at (2) above.

1. The annual return is prescribed for those dealers whose tax liability in the previous year does not exceed Rs. 25.000/-. Financial Year 2019-20 was the first financial year for which this new- annual periodicity of return filing is applicable. Accordingly, those dealers who were having tax liability below Rs. 25,000/-in the previous financial year 2018-19 were required to file annual return for the year 2019-20.

2. The Trade associations and tax consultants had represented that due to technical difficulties 2nd the pandemic situation in the State, they could not file annual return for the year 2019-20.

3. Owing to the pandemic situation of Covid-19, and lockdown declared by the State Government in Maharashtra from March 2020, due date for filing of annual return and making payment was extended till 21st July 2020 vide notification dated 8th July 2020 cited at (3) above. As the technical issues persisted, annual returns for the year 2019-20 could not be uploaded. The annual return for 2020-21 also could not be filed within due date, as the system docs not allow filing of subsequent return if previous return is not filed (in case of a tax payer who is liable to file annual return for both years). Hence it became necessary to extend the due date for filing annual returns for both the years i.e. 2019-20 and 2020-21. Representations from trade associations were also received in this regard to extend the due dates considering the second wave of the Covid-19 pandemic and the technical issues faced by them. Accordingly, notification referred at (4) above was issued on 20th April 2021 extending the due date of filing annual returns and making payment for the year 2019-20 and 2020-21 till 30th June 2021.

Technical Issues and clarification:

4. Periodicity of return is set at the beginning of every financial year. The notification to file annual return was issued in August 2019 and many dealers whose periodicity was set as quarterly were required to be shifted to annual frequency. However, some of such dealers have filed return at quarterly periodicity for part of financial year before the issuance of the notification. In view of this the applicable periodicity of filing for those dealers is as follows:-

a) The dealers who have already Hied quarterly return for the part of financial year, periodicity in SAP system cannot be changed during the year for balance part of the year. Therefore, they have to continue to file quarterly returns for such balance part of the financial year 2019-20. Whereas, the periodicity for subsequent financial year would be in accordance with eligibility as per amended provisions thereto.

b) The similar principle will be applicable to eases, where any return pertaining to financial year 2020-21 has also been filed at quarterly frequency. However, the dealer who have not filed any returns for part of the year 2020-21 are eligible to file returns as per amended periodicity.

5. It is needless to say that the late fee will not be applicable in ease of late filing of quarterly returns for both years 2019-20 and 2020-21, if such dealers file their returns for balance remaining quarters on or before 30th June, 2021.

6. There may be a certain class of dealers, who though eligible to file annual return, must have filed quarterly returns by making payment of late fees. In such cases the late fee can be refunded as per provisions of law.

7. In case of the dealers who have not filed any return during the period 2019-20 and 2020-21, and who are eligible to file annual return, can upload their returns without late fee as the due date for filing return is extended as per notification cited at (4) above. Needless to say, late fee will not be applicable if the annual returns are filed before the due date given as per notification cited at (4) above.

8. This Circular cannot be made use of for legal interpretation of the provisions of law, as it is clarificatory in nature. If any member of the Trade has any doubt, he may refer the matter to this office for further clarification.

9. You are requested to bring the contents of this circular to the notice of all the members of your association.

(Rajeev Kumar Mital)

Commissioner of state tax

Maharashtra State, Mumbai