The Government of Maharashtra has published the Maharashtra Goods and Services Tax (Amendment) Bill, 2026 — L.A. Bill No. XXXIII of 2026 in the Maharashtra Government Gazette, Extraordinary Part VIII, dated 22 June 2026. The Bill, introduced in the Maharashtra Legislative Assembly on 22 June 2026, proposes amendments to the Maharashtra Goods and Services Tax Act, 2017 with a view to implementing decisions taken by the Goods and Services Tax Council and maintaining uniformity with corresponding amendments made to the Central Goods and Services Tax Act, 2017.
The English translation of the Bill has been published under the authority of the Governor in pursuance of Article 348(3) of the Constitution of India. The Gazette publication records that the measure may be called the Maharashtra Goods and Services Tax (Amendment) Act, 2026 upon enactment.
Commencement May Be Notified Prospectively or Retrospectively
Under Clause 1(2) of the Bill, the proposed amendment law is to come into force on such date as the State Government may appoint by notification in the Official Gazette. The Bill expressly permits the State Government to give effect to provisions prospectively or retrospectively, and different dates may be appointed for different provisions. This feature is also explained in the Memorandum regarding Delegated Legislation appearing on page 4 of the Gazette publication.
Major Change Proposed in Section 15 for Post-Sale Discounts
One of the most significant amendments concerns Section 15 of the Maharashtra GST Act, dealing with the value of taxable supply.
Through Clause 2 of L.A. Bill No. XXXIII of 2026, the Bill proposes to substitute Section 15(3)(b). Under the proposed provision, a post-supply discount may qualify for exclusion from the value of supply where, after the supply has been effected, a credit note has been issued by the supplier and the recipient reverses the input tax credit attributable to such discount in accordance with Section 34.
The proposed substituted provision reads in substance that, after supply, where a discount is given, a credit note is issued and corresponding ITC is reversed by the recipient, the discount may be recognised under the statutory framework. The Statement of Objects and Reasons explains that the amendment is intended to remove the requirement of linking a post-sale discount with an agreement and instead link the treatment to issuance of a credit note and reversal of attributable ITC by the recipient.
Headline Impact: Pre-Agreed Discount Condition Proposed to Be Removed
The proposed amendment is significant for trade and industry because the existing statutory framework historically linked eligible post-supply discounts with pre-existing arrangements satisfying specified conditions. The Bill seeks to move towards a framework focused on:
issuance of a credit note by the supplier, and
reversal of attributable ITC by the recipient.
The stated legislative objective, as recorded on page 3 of the Gazette publication, is to do away with the requirement of linking the post-sale discount with an agreement.
Section 34 on Credit and Debit Notes to Be Correspondingly Amended
Through Clause 3, the Bill proposes an amendment to Section 34(1) of the Maharashtra GST Act.
After the words relating to goods or services being found deficient, the Bill proposes insertion of a reference covering cases where a discount referred to in Section 15(3)(b) is given. This change is intended to expressly integrate the proposed revised post-sale discount mechanism with the statutory credit note framework.
The Statement of Objects and Reasons confirms that this amendment seeks to include a reference to Section 15 in the provision governing credit and debit notes.
Provisional Refund Scope Proposed to Be Expanded under Section 54(6)
The Bill also proposes an important amendment to Section 54(6) dealing with provisional refund.
Through Clause 4(a), after the existing reference to supply of goods or services or both, the Bill proposes insertion of words covering unutilised input tax credit allowed under clause (ii) of the first proviso to Section 54(3).
According to the Statement of Objects and Reasons on page 3, the purpose is to extend the facility of provisional refund to refunds arising out of inverted duty structure.
Inverted Duty Structure Refunds Proposed to Receive Provisional Refund Facility
The proposed amendment could be particularly relevant for taxpayers accumulating unutilised ITC because the rate of tax on inputs is higher than the rate of tax on outward supplies.
The Bill’s stated objective is to extend the provisional refund mechanism to such inverted duty structure refunds, thereby broadening the scope of Section 54(6).
Threshold Restriction Proposed to Be Removed for Export Refund Sanctions
Another notable amendment is proposed through Clause 4(b) in Section 54(14).
The Bill seeks to insert wording excluding cases where refund of tax is claimed on account of goods exported out of India with payment of tax from the threshold limitation otherwise referred to in the provision.
The Statement of Objects and Reasons expressly states that the amendment is intended to remove the threshold limit for sanction of refund claims in respect of goods exported out of India with payment of tax.
Bill Seeks State-Level Uniformity with Central GST Law
The Statement of Objects and Reasons explains that various decisions taken by the GST Council required amendments in the Goods and Services Tax laws. It further records that the Central Goods and Services Tax Act, 2017 had been amended by the Finance Act, 2026, and that corresponding amendments were considered necessary in the Maharashtra GST Act to implement GST Council decisions and maintain uniformity between Central and State GST provisions.
The Bill identifies four principal objectives:
- reforming the statutory treatment of post-sale discounts under Section 15;
- amending Section 34 to align credit-note provisions with the revised discount framework;
- expanding provisional refunds under Section 54(6) to inverted duty structure cases; and
- removing the threshold restriction for certain export refund claims under Section 54(14).
No Additional Expenditure from State Consolidated Fund
The Financial Memorandum on page 5 states that the Bill does not contain any provision involving recurring or non-recurring expenditure from the Consolidated Fund of the State upon enactment.
Chief Minister Cites GST Council Decisions and Need for Uniformity
The Statement of Objects and Reasons is dated 15 June 2026 at Mumbai and bears the name of Devendra Fadnavis, Chief Minister. It records that the proposed amendments are intended to implement GST Council decisions and maintain uniformity in the application of Central and Maharashtra GST laws.
The Maharashtra Goods and Services Tax (Amendment) Act, 2026 can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/07/Maharashtra-Goods-and-Services-Tax-Amendment-Act-2026-June242026.pdf
