The Maharashtra State Tax Department has issued Trade Circular No. 3T of 2026 dated May 11, 2026, providing detailed instructions and criteria regarding periodicity of return filing under the Maharashtra Value Added Tax (MVAT) Act, 2002 and the Central Sales Tax (CST) Act, 1956.
The circular has been issued by the Office of the Commissioner of State Tax, Maharashtra, to clarify statutory provisions governing annual, quarterly and monthly return filing obligations for registered dealers under the MVAT and CST framework.
Return Filing Periodicity Based on Tax Liability and Refund Entitlement
As per Rule 17(4B) of the MVAT Rules, 2005, dealers are required to file returns according to their tax liability or refund entitlement during the previous financial year. The circular reiterates the following periodicity criteria:
- Dealers with tax liability not exceeding ₹25,000 shall file annual returns;
- Dealers with tax liability exceeding ₹25,000 but not exceeding ₹10 lakh, and refund entitlement not exceeding ₹1 crore, shall file quarterly returns;
- Dealers with tax liability exceeding ₹10 lakh or refund entitlement exceeding ₹1 crore shall file monthly returns.
The Department stated that the periodicity determined for dealers is displayed annually on the MAHAGST portal from 1st May every year.
Special Criteria for Non-Filer Dealers
The circular further provides administrative guidelines for dealers who failed to file returns during the immediately preceding financial year. Such non-filer dealers, except certain retail petroleum outlets, shall ordinarily be assigned monthly return filing periodicity by the Department.
Procedure for Seeking Change in Periodicity
Non-filer dealers and partial return filers seeking revision in the assigned periodicity have been instructed to first file all pending returns for the preceding financial year along with payment of applicable tax, interest, late fee and penalty.
Thereafter, dealers may submit requests through email at periodicity@mahagst.gov.in along with copies of filed returns and payment challans on or before 15 May of the relevant year. The circular clarifies that no requests for revision in periodicity will be entertained after the prescribed date.
Instructions for Regular Return Filers
Dealers who have regularly filed returns for the preceding financial year have been advised to verify the periodicity displayed on the MAHAGST portal and report grievances, if any, through the prescribed email mechanism before the due date.
Action against Defaulters
The Department has cautioned that stringent action shall be initiated against dealers who fail to file returns under the MVAT Act and CST Act. Such action may include:
- Levy of penalty;
- Initiation of unilateral assessments; and
- Other legal proceedings under the applicable Acts.
The circular also clarifies that it is explanatory in nature and should not be treated as a legal interpretation of statutory provisions.
The Complete Trade Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/05/1778499118Trade-Circular-No.-3-T-of-2026-dt.-11.05.2026.pdf
