Mumbai: Oil companies, who supply fuel to traders operating boats on the high seas, will now come under the ambit of VAT. This clause was a part of the Value Added Tax (VAT) Amendment Bill, 2024, which was approved in the Legislative Council on Thursday.
This change will now include a clearer definition of retail sales in the law, aimed at curbing tax evasion. Additionally, Clause 2(24)(5) of the Act will now allow taxation on sales made by institutions or clubs to their members.
The amended bill focuses on enhancing the state’s revenue collection. Under the current Maharashtra VAT Act of 2002, the state’s initial responsibility for tax collection was subject to specific conditions. With the proposed amendments, the state will be able to collect taxes more efficiently once the first charge is established without conditions, ensuring a faster tax collection process.
Deputy Chief Minister Ajit Pawar, in response to a question in the Legislative Council, also discussed efforts to improve GST collection systems. He assured that the government is working with the GST Council to ensure relief for farmers by reducing GST on essential agricultural products such as fertilizers, seeds, and pesticides.
Ajit Pawar also reiterated the government’s commitment to providing various subsidies and relief schemes for farmers, ensuring that GST relief measures are in place for essential agricultural goods to support the farming community.
