Maharashtra: GST & labour compliance

GST in Maharashtra

A sale where the supplier and the place of supply are both in Maharashtra carries CGST plus SGST, split equally. A sale to a buyer in another state carries IGST instead, and that tax goes to the destination state.

Registration threshold

A business that supplies only goods can stay unregistered up to ₹40,00,000 of aggregate turnover. The higher limit is lost if you supply any taxable service, or deal in ice cream, pan masala or tobacco products; those businesses register at ₹20,00,000.

Inter-state sales of goods need registration from the first rupee, whatever the turnover. Use the registration checker for the other compulsory cases.

Composition scheme

Manufacturers, traders and restaurants in Maharashtra can opt for composition up to ₹1.5 crore of turnover. Service providers have a separate ₹50 lakh limit. Composition dealers cannot sell across state lines or claim input tax credit.

Quarterly returns

Maharashtra is in the first QRMP group, so small taxpayers on quarterly filing submit GSTR-3B by the 22nd of the month after each quarter. Tax for the first two months of the quarter is still paid monthly by the 25th, through form PMT-06.

Reading a Maharashtra GSTIN

Every GSTIN issued in Maharashtra starts with 27. Characters 3 to 12 are the holder's PAN, the 13th counts registrations under that PAN in the state, the 14th is Z by default, and the 15th is a checksum. A GSTIN that starts with 27 but fails the checksum was mistyped. Check one in the GSTIN validator.

Professional tax in Maharashtra

Maharashtra charges professional tax on monthly income. The top slab is ₹200 a month once income passes ₹10,000, and the Constitution caps the total at ₹2,500 a year. In February, ₹300 is deducted so the year adds up to ₹2,500.

Employers with annual PT liability of ₹50,000 or more pay by the last day of each month; smaller employers pay annually by 31 March.

Employers obtain a Professional Tax Registration Certificate (PTRC) and individuals/businesses a Professional Tax Enrolment Certificate (PTEC) on the MahaGST portal.

See all Maharashtra slabs and the calculator.

Labour Welfare Fund in Maharashtra

Maharashtra runs a Labour Welfare Fund: ₹25 per employee from the employee and ₹75 from the employer each half-year, deducted in june and december.

By 15 July (for January–June) and 15 January (for July–December).

Work out Maharashtra LWF in the calculator.