Restructuring of Maharashtra Sales Tax Department


Office of the Commissioner of Sales Tax,
81h floor, Vikrikar Bhavan,
Mazgaon, Mumbai 400 010.


No.: JC/EIU/Restructuring/2015-16

Trade Circular No. 20T of 2015, Mumbai- Dated-31.12.2015

Sub.: Restructuring of Maharashtra Sales Tax Department.

Ref.: Administrative Instructions regarding restructuring of department No JCST/HQ/No.1, Mumbai dated 07/12/2015.

Gentleman Madam,.

The department had adopted functional organization structure as required for VAT administration. The functional organization led to creation of various flinctional divisions to look after a particular functional aspect in respect of a dealer. In view of the same various compliance related issues of dealers Were handled by different functional officers from functional divisions like Return. Audit. Refund, Recovery etc.As a result, a singe dealer used to get subjected to different officers making it inconvinient for a dealer. Department received many representations against the multiplicity of such proceedings of a single dealer with different officers. The deaprtmental manpower was also under strain because of such multiple proceedings. In the meantime, the Government of Maharashtra embarked upon the Ease of Doing Business with an aim of providing timely and efficient service to the trade through a single window.The implementation of GST is round the corner.

In view of representations received from the dealers, department’s own experience with the functional administration, prevalent systems in other states Excise 1 Service Tax department_ necessity of providing a single window system to the dealers and the support dealers will need when GST is implemented the department has undertaken restructuring of work allotment. This restructuring entails changing the present functional setup into a single desk multi-functional setup wherein dealers will be allocated to the he called as,the Nodal Officers.Under this system each dealer will have a Nodal Officer who will look after functions of amendment and cancellations of registrations,returns follow up, audits/assessments/ issue based audits,processing refunds, issuance of CST forms,cross checks and recovery of dues. In addition to these functions some of the Nodal Officers will also carry out the Registration of new deales.Some of the Nodal Officers shall carry out the Surveys of unregistered dealers at the instructions of the concerned Joint Commissioners.

2. Formation of Nodal Divisions and Nodal Units:

The functional Divisions will now be renamed as the Nodal Divisions from immediate effect. These Divisions will be headed by the Joint Commissioners.The restructuring for Mumabi and Pune Zones is shown as per Table 1 and Table 2 below.The Tables showing restructuring at other locations is as per Table 3. The Column 4 of the Tables 1  and 2 below shows the number of Nodal Unitsthose are formed under each of the Nodal Divisions. The Nodal Units are headed by the Nodal Deputy Commissioners.

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2 Replies to “Restructuring of Maharashtra Sales Tax Department”

  1. SANJAY MADAN says:

    Subject: Exploitation of common people by Mumbai Restaurants.

    Dear Sir/Madam,

    From 1st July 2017 the Government of India has implemented Goods and Service Tax Act, 2017 all over India except the State of Jammu and Kashmir.

    Common people of Mumbai go to restaurant for their daily snacks and meals. Before 1st July 2017 they used to get bill as per the price printed on menu card, e.g. if price of Punjabi Samosa was printed as Rs.50/-, they used to get bill of Rs.50/- without mentioning any taxes and accordingly amount of Rs.50/- was paid at the counter.

    However, same restaurant from 1st July 2017 started issuing bill adding GST and started collecting money as follows;

    Punjabi Samosa Rs. 50/-

    Add CGST @9% Rs. 4.50
    Add SGST @9% Rs. 4.50

    Amount payable Rs. 59/-

    Earlier restaurant owner was liable to pay VAT and various other taxes to the treasury, however, no taxes were shown separately on the bill and only printed item price used to collect from the customer.

    I raised this issue with restaurant operator, he informed me that earlier all taxes were paid directly by them to respective government authority on the basis of turn-over on totality and not individual item-wise. That is the reason why same was not reflected on individual customer bill. That means this tax amount was considered in the price of the item reflected in the Menu Card as no restaurant owner can pay taxes from his own pocket.

    With the introduction of GST these restaurants simply modified their billing software and made provision to add CGST & SGST and started collecting the same from the common people without reducing the price of the item in this case price of Samosa.

    It is said that earlier restaurant owner used to pay total tax @ 20.5% (14.5% VAT, 5.6%ST, 0.2% Swach Bharat tax, and 0.2% Krishi Kalyan tax). So in other words price of Samosa was finalized after taking into account recovery of 20.5% taxes from the customer. Therefore CGST & SGST should be collected after reducing price of individual item unfortunately that is not done by these restaurant owners and they are started looting common people by collecting extra amount on account of CGST & SGST.

    I therefore, appeal common people to boycott these restaurants unless and until they reduce price of individual item mentioned in the menu card and bring amount payable at the par (if not reduce) at original level.

    In this case Punjabi Samosa Revised Price should be Rs.42.37 and CGST & SGST should be collected on this amount so as to amount payable would be Rs.50/-.

    I therefore request to the Editor to take up matter with the Finance Ministry to give immediate direction to the Restaurant Association to implement GST Act, 2017 in true spirit and stop exploiting common people of India.

    With regards,

    Sanjay Madan
    (Common man)
    Mobile No. 9820727556.

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