Maharashtra GST Department Mandates Rs 500 Stamp Duty on Letters of Authority (LOA) for Taxpayer Representatives:

The Maharashtra GST Department has issued instructions regarding the requirement of stamp duty on letters of authority submitted by authorised representatives appearing on behalf of taxpayers. The directions were issued by the Office of the Joint Commissioner of State Tax, Nodal Division-2, Pune.

The department stated that under Section 116 of the CGST Act, 2017, an authorised representative appearing before the tax authorities on behalf of a taxpayer is required to submit a properly signed and stamped letter of authority. The department clarified that the document must comply with the provisions of the Maharashtra Stamp Act.

As per the instructions, the definition of “Power of Attorney” under Section 2(r) of the Maharashtra Stamp Act covers a letter of authority. Accordingly, stamp duty of Rs 500 is applicable on such letters of authority submitted by Chartered Accountants (CAs), Cost Accountants (ICWAIs), GST Practitioners (GSTPs), relatives or employees representing taxpayers.

However, the requirement of Rs 500 stamp duty does not apply where the authorised representative is a lawyer or advocate who is a member of the Bar Council. In such cases, the letter of authority may carry the appropriate court fee stamp as prescribed under the Maharashtra Court Fees Act.

The department referred to the case of Prasad Tendulkar v. State of Maharashtra (W.P. No. 313 of 2024), in which the State GST Department has filed an affidavit stating the above legal position. The matter is currently pending before the Bombay High Court.

The instructions also referred to the Supreme Court's judgment in Uday Shankar Triyar v. Ram Kalewar Prasad Singh (AIR 2006 SC 269). The department directed proper officers to verify letters of authority submitted under Section 116 of the CGST Act and ensure that they are properly stamped, except where the authorised representative is an advocate.

The department has asked all proper officers under Nodal-2 to strictly follow these legal provisions and the cited judicial decisions while examining letters of authority, without taking a lenient view.