Earlier the State of Maharashtra had introduced VAT in respect of very few specified items under the old Bombay Sales Tax Act.

The entire Bombay Sales Tax Act and certain related taxes got replaced by the Maharashtra Value Added Tax Act (MVAT Act), 2002 with effect from 1st April 2005

VAT, a globally recognized sales tax system, has been introduced in more than 130 countries

VAT in Maharashtra is levied under a legislation known as the Maharashtra Value Added Tax Act (MVAT Act), 2002, supported by Maharashtra Value Added Tax Rules (MVAT Rules). VAT is levied on sale of goods including intangible goods.