Dealer [Section 2(8)]
According to this Section, a dealer is a person who carries on the business of buying
and selling goods in the State (i.e. Maharashtra). The dealer may work for
commission, remuneration or otherwise.
A dealer also includes :
(1) A factor, broker, commission agent, del-credere agent or any other mercantile
agent who carries on business of buying or selling goods belonging to any
principal whether disclosed or not.


(2) An auctioneer who sells or auctions goods whether or not be has the authority
to sell the goods belonging to any principal whether disclosed or undisclosed
and whether the offer of the intending purchaser is accepted by him or by the
(3) Society or club or other association, which buys goods from its members or
sells goods to its members.
(4) A non resident dealer or as the case may be, an agent residing in the State of a
non-resident dealer, who buys or sells goods in the State in the course of the
A non-resident dealer is defined u/s 2(16) as a dealer who effects purchases or
sale of goods in Maharashtra, but has no fixed place of business in
A person carrying on business outside Maharashtra will not, ordinarily be a
dealer under MVAT Act; but if such person buys or sells goods in Maharashtra,
such person will become a dealer under this Act.
Thus, a dealer is a person who buys and sells goods in the course of business, in
Maharashtra. If the goods are bought or sold for personal consumption, then the
concerned person is not a “dealer”. Similarly, a person who renders services is not a
The following are expressly excluded from the definition of a dealer:
 An agriculturist who sells exclusively agricultural produce grown on land
cultivated by him personally without converting them into finished goods.
 An educational institution carrying on the activity of manufacturing, buying, or
selling goods for achieving its main objects.
 A transporter, holding permit for transport vehicles, which are used for hire is
not considered as a dealer in respect of sale or purchase of such transport
vehicles or its parts, components or accessories.
Persons & bodies which do not carry on business of buying or selling of goods but
which occasionally dispose off any goods which are unclaimed, unserviceable,
confiscated scrap, etc. by auction or otherwise, on cash or deferred payment, are also
treated as dealers by explanation given to the definition. These persons / bodies are :
(i) Customs Department of the Government of India
(ii) Departments of Union Government and any Department of any State
(iii) Incorporated or unincorporated societies, clubs or other associations of persons;
(iv) Insurance & Financial Corporations, institutions or companies & Banks included
in the Second Schedule to the Reserve Bank of Bank of India Act, 1935;
(v) Local authorities;
(vi) Railway administration
(vii) Maharashtra State Road Transport Corporation
(viii) Port Trusts;

(ix) Public Charitable Trusts
(x) Shipping and construction companies, air transport companies, airlines and
advertising agencies;
(xi) any other corporation, company, body or authority owned or constituted by, or
subject to administrative control, of the Central Government, any State
Government or any local authority

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