As part of the Maharashtra State Budget 2023, an amnesty scheme for Value Added Tax (VAT) was introduced from May 1st, 2023 to October 31st, 2023.
The scheme will be known as the 'Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023' and will apply to various taxes levied by the GST Department prior to the introduction of the GST Act.
Small dealers with arrears of Rs. 2,00,000 or less per year will have their arrears completely waived.
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For dealers with unpaid arrears of up to Rs. 50 lakhs, only 20% of the total amount will be required to be paid, with the remaining 80% being waived.
This scheme is expected to benefit around one lakh small dealers and medium dealers in almost 80,000 cases.
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The Maharashtra State BJP Cell of Chartered Accountants proposed the scheme on March 4th, 2023, and it is expected to bring significant financial benefits to the Maharashtra government by extending the MVAT amnesty scheme through July 31st, 2023.