Issued by: Brihanmumbai Municipal Corporation Chief Engineer Development Plan | 01 April 2026
This circular issued by the Brihanmumbai Municipal Corporation (BMC) informs about the creation of a new General Ledger (GL) code for the recovery and remittance of One-Time Non-Agricultural (NA) Conversion Premium. The update is based on amendments to the Maharashtra Land Revenue Code, 1966, particularly substitution of Section 42 and Section 47, and Government Resolution dated February 10, 2026. The Finance Department has established a dedicated GL code to streamline accounting and collection through official systems. The circular also notes that as per GST consultant opinion, this income is categorized as non-taxable under applicable exemption notification. This update ensures standardized financial processing across Building Proposal Offices and ward offices, and supports proper accounting compliance within BMC systems.
New dedicated GL code has been created for recovery and remittance of One-Time Non-Agricultural Conversion Premium.
Chief Engineer Development Plan BMC | 01 April 2026
As per the opinion obtained from the GST consultant, the One-Time Non-Agricultural Conversion Premium collected by BMC is classified as non-taxable income. This falls under the exemption provided in Notification No. 14/2017-Central Tax Rate, ensuring no GST applicability on such charges.
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The new GL code is created to record and manage the collection of One-Time Non-Agricultural Conversion Premium in a standardized and trackable manner within BMC financial systems.