Mumbai: With the introduction of GST, the registration of dealers under the Maharashtra VAT (‘MVAT’) law was succeeded by way of migration to GST Law. The existing MVAT registration was deemed to be cancelled with effect from 1st July 2017.
As a consequence of this, dealers who had paid security deposit of Rs.25,000 for obtaining voluntary registration became eligible for refund of the same.
Prior to 2011, this security deposit was eligible to be adjusted against tax payable under the MVAT law. However, with effect from 4 May 2011, the said deposit was not eligible to be adjusted against tax payable under the MVAT law. Hence, only dealers who have not adjusted the said security deposit against tax payable under the MVAT law are entitled to refund.
Taxpayers need to fulfill the following conditions for obtaining the said refund:
– amount of security deposit is not adjusted against VAT payable;
– filed all the VAT returns till date of conversion;
– paid the tax due as per the said returns and
– have made the application for refund on/ before 31 March 2019.
On receipt of application, proper authority shall within 90 days from receipt of application grant order in Form 502 to refund the said security deposit.
Accordingly, those who have not claimed refund of MVAT security deposit, are advised to file application for refund at the earliest. Application for refund of MVAT security deposit refund needs to be made on or before 31 March, 2019.
The Article is published based on contribution from CA. Pankaj Jain, Partner at TaXtra Consultants.