finance

Published on 9 April 2025

Maharashtra Reduces VAT on Petrol and Diesel Effective June 2024

Introduction

The Maharashtra government has announced an important amendment to the Maharashtra Value Added Tax (VAT) Act of 2002, specifically affecting the VAT rates on petrol and diesel. Effective from June 29, 2024, this amendment reduces the VAT on diesel and petrol for Mumbai and Navi Mumbai.

Notification Details

The notification from the Finance Department, dated June 28, 2024, outlines the changes under the Maharashtra Value Added Tax Act, 2002.

Key Changes in VAT Rates

  1. VAT on Diesel:

    • Current Rate: 24%
    • New Rate: 21%

  2. VAT on Petrol:

    • Current Rate: 26%
    • New Rate: 25%

Changes Effective From June 29, 2024

The amendment to the SCHEDULE ‘B’ of the Maharashtra Value Added Tax Act, 2002, includes the following adjustments:

  1. Entry 5 (Diesel):

    • In sub-entry (a):
      • In clauses (i) and (ii):
        • Column (2): The phrase “Municipal Corporations of the Brihan Mumbai, Thane, Navi Mumbai and within such other areas for such period as may be notified by the State Government in the Official Gazette” will be replaced with “State of Maharashtra”.
        • Column (3): The VAT figure of “24%” will be revised to “21%”.
    • Sub-entry (b) will be deleted.

  2. Entry 10 (Petrol):

    • In sub-entry (a):
      • In clauses (i) and (ii):
        • Column (2): The phrase “Municipal Corporations of the Brihan Mumbai, Thane, Navi Mumbai and within such other areas for such period as may be notified by the State Government in the Official Gazette” will be replaced with “State of Maharashtra”.
        • Column (3): The VAT figure “26% + Five rupees and twelve paisa per litre” will change to “25% + Five rupees and twelve paisa per litre”.
    • Sub-entry (b) will be deleted.

Conclusion

The amendment marks a crucial revision in the VAT rates for petrol and diesel in Maharashtra, aiming to provide financial relief to consumers. These alterations will take effect from June 29, 2024, as part of the Maharashtra government's ongoing efforts to manage fuel taxation effectively.

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