MVAT is a system of indirect taxation introduced in Maharashtra as a replacement for sales tax. It is a tax added at each stage of production and distribution, which is ultimately passed on to the consumer. VAT aims to create a uniform, transparent, and globally accepted tax structure. It benefits consumers, businesses, and the government. VAT rates in Maharashtra range from 0% to 20% depending on the good or service. MVAT applies to all dealers and importers whose annual sales or purchases exceed certain thresholds.