LEVY AND COLLECTION OF TAX
7. Scope of supply
(1) For the purposes of this Act, the expression “supply” includes––
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, license, rental, lease or disposal made or
agreed to be made for a consideration by a person in the course or
furtherance of business ;
(b) import of services for a consideration whether or not in the
course or furtherance of business ;
(c) the activities specified in Schedule I, made or agreed to be made
without a consideration ; and
(d) the activities to be treated as supply of goods or supply of services
as referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),––
(a) activities or transactions specified in Schedule III ; or
(b) such activities or transactions undertaken by the Central
Government, a State Government or any local authority in which they
are engaged as public authorities, as may be notified by the Government
on the recommendations of the Council,
shall be treated neither as a supply of goods nor a supply of services.
(3) Subject to the provisions of sub-sections (1) and (2), the Government
may, on the recommendations of the Council, specify, by notification, the
transactions that are to be treated as—
(a) a supply of goods and not as a supply of services ; or
(b) a supply of services and not as a supply of goods.
8. Tax liability on composite and mixed supplies
The tax liability on a composite or a mixed supply shall be
determined in the following manner, namely : —
(a) a composite supply comprising two or more supplies, one of which
is a principal supply, shall be treated as a supply of such principal supply ;
and
(b) a mixed supply comprising two or more supplies shall be treated
as a supply of that particular supply which attracts the highest rate of
tax.
9. Levy and collection
(1) Subject to the provisions of sub-section (2), there shall be levied a
tax called the Maharashtra goods and services tax on all intra-State supplies
of goods or services or both, except on the supply of alcoholic liquor for human
consumption, on the value determined under section 15 and at such rates,
not exceeding twenty per cent., as may be notified by the Government on the
recommendations of the Council and collected in such manner as may be
prescribed and shall be paid by the taxable person.
(2) The State tax on the supply of petroleum crude, high speed diesel,
motor spirit (commonly known as petrol), natural gas and aviation turbine
fuel, shall be levied with effect from such date as may be notified by the
Government on the recommendations of the Council.
(3) The Government may, on the recommendations of the Council, by
notification, specify categories of supply of goods or services or both, the tax
on which shall be paid on reverse charge basis by the recipient of such goods
or services or both and all the provisions of this Act shall apply to such
recipient as if he is the person liable for paying the tax in relation to the
supply of such goods or services or both.
(4) The State tax in respect of the supply of taxable goods or services or
both by a supplier, who is not registered, to a registered person shall be paid
by such person on reverse charge basis as the recipient and all the provisions
of this Act shall apply to such recipient as if he is the person liable for paying
the tax in relation to the supply of such goods or services or both.
(5) The Government may, on the recommendations of the Council, by
notification, specify categories of services the tax on intra-State supplies of
which shall be paid by the electronic commerce operator if such services are
supplied through it, and all the provisions of this Act shall apply to such
electronic commerce operator as if he is the supplier liable for paying the tax
in relation to the supply of such services :
Provided that where an electronic commerce operator does not have a
physical presence in the taxable territory, any person representing such
electronic commerce operator for any purpose in the taxable territory shall
be liable to pay tax :
Provided further that where an electronic commerce operator does not
have a physical presence in the taxable territory and also he does not have a
representative in the said territory, such electronic commerce operator shall
appoint a person in the taxable territory for the purpose of paying tax and
such person shall be liable to pay tax.
10. Composition levy
(1) Notwithstanding anything to the contrary contained in this Act
but subject to the provisions of sub-sections (3) and (4) of section 9, a registered
person, whose aggregate turnover in the preceding financial year did not
exceed fifty lakh rupees may opt to pay, in lieu of the tax payable by him, an
amount calculated at such rate as may be prescribed, but not exceeding,—
(a) one per cent. of the turnover in State in case of a manufacturer,
(b) two and a half per cent. of the turnover in State in case of persons
engaged in making supplies referred to in clause (b) of paragraph 6 of
Schedule II, and
(c) half per cent. of the turnover in State in case of other suppliers,
subject to such conditions and restrictions as may be prescribed :
Provided that the Government may, by notification, increase the said
limit of fifty lakh rupees to such higher amount, not exceeding one crore
rupees, as may be recommended by the Council.
(2) The registered person shall be eligible to opt under sub-section (1),
if—
(a) he is not engaged in the supply of services other than supplies
referred to in clause (b) of paragraph 6 of Schedule II ;
(b) he is not engaged in making any supply of goods which are not
leviable to tax under this Act ;
(c) he is not engaged in making any inter-State outward supplies of
goods ;
(d) he is not engaged in making any supply of goods through an
electronic commerce operator who is required to collect tax at source
under section 52 ; and
(e) he is not a manufacturer of such goods as may be notified by the
Government on the recommendations of the Council :
Provided that where more than one registered person are having
the same Permanent Account Number (issued under the Income-tax
Act 1961)( 43 of 1961), the registered person shall not be eligible to opt for the scheme
under sub-section (1) unless all such registered persons opt to pay tax
under that sub-section.
(3) The option availed of by a registered person under sub-section (1)
shall lapse with effect from the day on which his aggregate turnover during
a financial year exceeds the limit specified under sub-section (1).
(4) A taxable person to whom the provisions of sub-section (1) apply
shall not collect any tax from the recipient on supplies made by him nor shall
he be entitled to any credit of input tax. paid tax under sub-section (1) despite not being eligible, such person shall,
in addition to any tax that may be payable by him under any other provisions
of this Act, be liable to a penalty and the provisions of section 73 or section 74
shall, mutatis mutandis, apply for determination of tax and penalty.
11. Power to grant exemption from tax.
(1) Where the Government is satisfied that it is necessary in the
public interest so to do, it may, on the recommendations of the Council, by
notification, exempt generally, either absolutely or subject to such conditions
as may be specified therein, goods or services or both of any specified
description from the whole or any part of the tax leviable thereon with effect
from such date as may be specified in such notification.
(2) Where the Government is satisfied that it is necessary in the public
interest so to do, it may, on the recommendations of the Council, by special
order in each case, under circumstances of an exceptional nature to be stated
in such order, exempt from payment of tax any goods or services or both on
which tax is leviable.
(3) The Government may, if it considers necessary or expedient so to do
for the purpose of clarifying the scope or applicability of any notification
issued under sub-section (1) or order issued under sub-section (2), insert an
explanation in such notification or order, as the case may be, by notification
at any time within one year of issue of the notification under sub-section (1)
or order under sub-section (2), and every such explanation shall have effect
as if it had always been the part of the first such notification or order, as the
case may be.
(4) Any notification issued by the Central Government, on the
recommendations of the Council, under sub-section (1) of section 11 or order
issued under sub-section (2) of the said section of the Central Goods and
Services Tax Act shall be deemed to be a notification or, as the case may be,
an order issued under this Act.
Explanation.––For the purposes of this section, where an exemption in
respect of any goods or services or both from the whole or part of the tax
leviable thereon has been granted absolutely, the registered person supplying
such goods or services or both shall not collect the tax, in excess of the effective
rate, on such supply of goods or services or both.
