18 August 2010

Online/ epayment of MVAT and CST in Maharashtra

State of Maharashtra has been in forefront in implementation of computerisation of the Sales-tax department as compared to other states. But it is a apathy that the steps taken by Maharashtra state are also too nascent a step towards the process of computerisation of the administration of sales-tax department. Maharashtra has been in forefront to introduce e-filing of MVAT and CST returns. It has introduced the process of making online application for obtaining declaration under Central Sales Tax. It has introduced e-application for registration. Dealers in the state can make online application for registration for their business. No doubt, even though the state government has taken all steps to smoothly implement its objective; of computerisation  of sales tax department administration, the department is still in the state of chaos. The staff of the department, tax-practitioners and public in general are confused what is going on in the department and what procedures are to be followed.

On 15th February, 2010, the state government has issued a notification amending MVAT Rules, 2005. It has inserted rule 45A providing of e-payment of MVAT. Commissioner can notify the period starting on or after which certain class or classes of dealers will have to pay MVAT taxes online through internet banking. i.e. make e-payments.

The payments are required to be made online in form MTR-6 (New e-form) and the payment is to be made through Public Sector Banks only.

On 26th May, 2010, Government has issued notification making all dealers who file monthly return, to mandatorily make e-payments of MVAT and CST taxes. All payments made by such dealer from 1st June, 2010 will have to be made through electronic payment mode.

Further on 28th July, 2010, Government made has again issued notification making all dealers who file quarterly return, to mandatorily make e-payment of MVAT and CST Taxes. All payments made by such dealer from 1st October, 2010 must be made by electronic/internet payment system

Class of DealersDate from which e payment is mandatory
Filing Monthly Returns1st June, 2010
Filing Quarterly Return1st October, 2010
Filing Half Yearly ReturnsDate not notified

Mode of making e-payment

There are two methods of making e payment

  • E-payment directly from Bank's website:

    The dealer can log to the website of the following banks and make e-payment through the link provided on banks website.

    Sr. No.
    Name Of The Bank

    State Bank of India

    State Bank of Hyderabad

    State Bank of Travancore

    State Bank of Indore

    State Bank of Mysore

    State Bank of Bikaner & Jaipur

    State Bank of Patiala

    IDBI Bank

    Corporation Bank

    Union Bank of India

    Bank of India

    Bank of Maharashtra

    Bank of Borada

  • Banks integrated with MSTD website

    • For making payment through MSTD integrated website the dealers has to download prerequisite software for MVAT website. However the same banks are also listed in the above mentioned first method. So the dealer may avoid making payment through second method

Sr. No. Name Of The Bank


Corporation Bank

Union Bank of India

Bank of Maharashtra

  • In case the dealers bank doesn't have an on line payment facility or does not have account in authorised bank, then the sales tax department has advised to make e-payment from the account of any other person who has an internet banking account with these authorised bank. The  challan for making such payment must clearly indicate your TIN number & name of the business of the dealer. (But natural). However this suggestion of departments seems to be highly impractical. The department must have first made arrangements with most banks before implementing the scheme of e-payments.

Other points

  • The dealer can also make e-payment of CST for the periods before 1-4-2005, but as MVAT is applicable from 1-4-2005, payment before 1-4-2005 on account of BST cannot be made for the period before 1-4-2005
  • On making payment of taxes through internet banking, a GRN(Government Reference Number) is generated on MVAT website. This is number correlated with bank scroll.
  • The dealer is required to make separate payment under MVAT and CST.
  • Payments can be make any time of the date, but payments made after 8 p.m. will be accounted on the next day. So when payment is made on last day, payments must be made before 8 p.m. or the payment may be treated as delayed payment and default. The dealer will be then unnecessarily penalised.