Maharashtra's budget for 2022-23 decreases the VAT on natural gas from 13.5 percent to 3%

In the annual budget 2022-23, Maharashtra Deputy Chief Minister Ajit Pawar proposed tax concession ideas to benefit common citizens, industry, and enterprises, against the backdrop of the state economy's restoration and the impact of the Russia-Ukraine war.

 

Pawar has decreased the VAT on natural gas from 13.5 percent to 3%, making residential piped and compressed natural gas more affordable, providing much-needed relief to homeowners and car owners. This also aims to promote the usage of natural gas, which is more environmentally friendly.

 

According to Article 5 (g-a) (ii) of the Maharashtra Stamp Act, the period during which stamp duty paid on an earlier deed can be adjusted against a subsequent deed has been expanded from one year to three years to encourage the construction industry. Pawar has advocated exempting gift deeds from stamp duty without regard for businesses or institutions. Under Section 9 of the Maharashtra Stamp Act, any donor transferring land without consideration to corporations or local self-governing organizations under the authority of the State of Maharashtra is exempted from the then-current Stamp Duty of 3% on gift deeds or 5% on sale deeds.

 

The FM has also proposed an Amnesty Scheme under the Stamp Act for pending penalty dues from April 1, 2022, to November 30, 2022. There will be a shortage of Rs 1500 crores in outstanding penalty dues as a result of this waiver under the Amnesty Scheme 2022.

 

It is proposed to waive the current Stamp Duty of 0.1 percent levied under the Maharashtra Stamp Act on gold-silver delivery order documents imported into the State of Maharashtra in order to boost the gold and silver jewellery industry, refineries, and exports, as well as to generate employment in the State and combat tax evasion. There will be a revenue deficit of roughly Rs 100 crore as a result of the above tax relief.

 

The FM has also proposed an Amnesty Scheme under the Stamp Act for pending penalty dues from April 1, 2022, to November 30, 2022. There will be a shortage of Rs 1500 crores in outstanding penalty dues as a result of this waiver under the Amnesty Scheme 2022.

 

It is proposed to waive the current Stamp Duty of 0.1 percent levied under the Maharashtra Stamp Act on gold-silver delivery order documents imported into the State of Maharashtra in order to boost the gold and silver jewellery industry, refineries and exports, as well as to generate employment in the State and combat tax evasion. There will be a revenue deficit of roughly Rs 100 crore as a result of the above tax relief.

 

 

Image Courtesy: Twitter @SanjayJog7