Maharashtra cabinet clears amendments to GST law to align state with Centre, eases compliance for businesses

Mumbai: In a move aimed at ensuring uniform implementation of the Goods and Services Tax (GST) regime and reducing compliance ambiguities for taxpayers, the state cabinet on Tuesday approved amendments to the Maharashtra Goods and Services Tax (MGST) Act, 2017, to bring it in line with recent changes made to the Central Goods and Services Tax (CGST) Act.

The decision was taken at a cabinet meeting chaired by chief minister Devendra Fadnavis.

Officials said the amendments follow changes approved by the GST Council and subsequently incorporated by the Union government into the CGST Act. The Maharashtra cabinet approved a draft bill to make corresponding changes to the state legislation, ensuring consistency between central and state GST laws.

For businesses operating across multiple states, alignment of GST provisions is expected to provide greater legal clarity, reduce interpretational disputes and help maintain a uniform tax framework across the country.

The changes stem from decisions taken at the 56th meeting of the GST Council, the apex federal body that recommends GST-related policy and legislative reforms. Since GST is jointly administered by the Centre and states, amendments made to the central law are typically mirrored in state GST statutes to preserve the integrity of the nationwide indirect tax system.

Tax professionals said harmonisation of state and central provisions helps taxpayers by avoiding conflicting interpretations and streamlining compliance requirements. It also enables smoother administration of input tax credit, assessments and dispute resolution mechanisms under the GST framework.

The draft amendments to the MGST Act will now be taken forward for legislative approval before being brought into force.

GST was rolled out across India on July 1, 2017, replacing a host of central and state indirect taxes. Maharashtra, one of the country’s largest manufacturing and services economies, accounts for a significant share of GST collections. Regular alignment of state laws with central amendments is considered critical for ensuring seamless tax administration and improving ease of doing business.