VAT on Petroleum complete MVAT compliance for petroleum product dealers across Maharashtra.
End-to-end VAT on petroleum compliance services in Mumbai and across Maharashtra — MVAT registration for petrol pump operators and petroleum dealers, monthly VAT return filing for petrol, diesel, ATF, and natural gas, set-off computation, petroleum VAT audit under Section 61, and assessment and appeal services under the Maharashtra Value Added Tax Act, 2002.
Petroleum products — petrol, high speed diesel, aviation turbine fuel (ATF), natural gas, and crude oil — are specifically excluded from GST and continue to be taxed by states under their VAT statutes. In Maharashtra, VAT on petroleum is levied under the Maharashtra Value Added Tax Act, 2002, and the Maharashtra Motor Spirit (Taxation) Act, 1938, for motor spirit. Petrol pump operators, petroleum distributors, and dealers in fuel and lubricants must maintain MVAT registration and file monthly returns regardless of their GST compliance status.
The VAT rate on petroleum in Maharashtra is one of the highest in the country — petrol attracts a VAT component of around 26% and diesel around 24%, though exact rates and additional levies vary with state budget notifications and central government revisions under the MSTL / MMST framework. These rates are applied on the sale price at the pump and must be correctly computed in the monthly MVAT return. Input set-off on purchase of petroleum products for resale is a key compliance area, as incorrect claims can result in substantial demand and interest.
Our VAT on petroleum compliance practice covers MVAT registration for new petrol pump operators and petroleum dealers, monthly MVAT return filing with correct rate application for each petroleum product, set-off computation on eligible purchases from oil marketing companies and distributors, reconciliation of VAT collected with pump sales data, annual MVAT audit under Section 61 and Form 704 certification, handling of Sales Tax Department assessment notices, and appeal before the Maharashtra Sales Tax Appellate Tribunal for disputed demands.
Our VAT on Petroleum Services
Petrol Pump MVAT Registration
New MVAT registration for petrol pump operators selling petrol, diesel, and related petroleum products.
Monthly Petroleum VAT Return
Monthly MVAT return for petroleum product dealers with correct rate for petrol, diesel, ATF, and lubricants.
Set-Off on Petroleum Purchases
Computation of eligible input set-off on petroleum purchased from OMCs and distributors for resale.
Pump Sales Reconciliation
Reconciliation of pump sales data with MVAT return turnover to ensure correct output VAT declaration.
Lubricant & Additive VAT
VAT computation for lubricating oils, greases, and petroleum additives at applicable MVAT rates.
ATF Dealer Compliance
Monthly MVAT return and annual audit for Aviation Turbine Fuel dealers and airport fuel suppliers.
Annual MVAT Audit — Form 704
Form 704 audit certification for petroleum dealers above the turnover threshold under Section 61.
Assessment & Notice Reply
Reply to Sales Tax Department assessment notices, show cause notices, and demand orders for petroleum VAT.
Our Petroleum VAT Compliance Workflow
Product & Rate Review
Confirm petroleum product categories sold and applicable MVAT rates for each product.
Sales & Purchase Data
Collect pump sales data, purchase invoices from OMCs, and VAT payment challans.
Tax Computation
Compute output VAT on petroleum sales, eligible purchase set-off, and net VAT payable.
Return Filing
File monthly MVAT return on Mahavat portal with payment before the 21st of the following month.
Audit & Assessment
Conduct annual Form 704 audit and handle assessment notices with full reconciliation support.
Benefits of Expert Petroleum VAT Compliance
Frequently Asked Questions
Petroleum products — crude oil, petrol, diesel, ATF, and natural gas — are excluded from GST under Article 279A(4) of the Constitution until the GST Council recommends their inclusion. States continue to levy VAT on these products under their respective VAT laws.
Maharashtra levies VAT on petrol at approximately 26% and on diesel at approximately 24% of the sale price, though these rates include surcharges and are subject to revision through state budget notifications. The exact applicable rate must be verified from the current Maharashtra VAT schedule.
Yes. A registered MVAT dealer buying petroleum products from oil marketing companies (OMCs) or distributors for resale can claim VAT set-off on eligible purchase invoices, subject to the conditions under the MVAT Act. Correct input set-off computation significantly reduces the net monthly VAT liability.
Yes. A petrol pump selling petroleum products (VAT-applicable) and also selling accessories, lubricants, or food items (GST-applicable) must be registered under both MVAT and GST separately, and must maintain separate accounts and file returns under each statute.
A petroleum VAT dealer must maintain daily sales records from the pump, purchase invoices from OMCs and distributors, VAT payment challans, MVAT return acknowledgements, set-off registers, and C-form records. Records must be retained for at least 8 years for MVAT assessment purposes.
Need Petroleum VAT Compliance?
From monthly MVAT return filing to Form 704 audit and assessment defence, our team provides complete VAT compliance for Maharashtra petroleum dealers and petrol pump operators.
Talk to Our Petroleum VAT Team or call +91 9819 000 511