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Haryana government launches one-time settlement scheme to settle pre-GST tax dues
During the introduction of the scheme in Gurugram, the CM also announced to open a GST training institute in collaboration with HIPA, Gurugram. Responding to the demands of traders and industry organisations, the government plans to establish branches of the GST Tribunal in Gurugram and Hisar
Haryana chief minister Manohar Lal Khattar on Sunday launched One Time Settlement-2023 (OTS) scheme, a move that is aimed at addressing a long-standing demand of Haryana’s traders and business community to settle pending tax payments pertaining to pre-GST regime.
This scheme will be operational from January 1 to March 30.
During the introduction of the scheme in Gurugram, the CM also announced to open a GST training institute in collaboration with HIPA, Gurugram. Responding to the demands of traders and industry organisations, the government plans to establish branches of the GST Tribunal in Gurugram and Hisar.
On the occasion, deputy chief minister Dushyant Chautala, who holds the portfolio of excise and taxation department, also addressed the gathering.
Under the OTS scheme, the tax amount will be divided into four categories, starting with an undisputed fee category for cases without dispute. Taxpayers will pay 100% of the amount in this category, with no penalties or interest, an official spokesperson said.
In case of disputed taxes under ₹50 lakh, taxpayers will pay 30% of the outstanding amount and if the disputed tax amount is above ₹50 lakh, they will pay 50%. In the third category, undisputed taxes will be assessed by the department where no appeal was made. Taxpayers will pay 40% if the amount is below ₹50 lakh and 60% if it is above ₹50 lakh. In this category also there will be relief from penalties and interest.
The fourth category includes outstanding amounts due to differences in tax rates. Here, the government has discounted the amount, requiring taxpayers to pay only 30% of the total.
“While offering tax relief, the OTS scheme also provides easy instalment options,” the spokesperson said, adding that taxpayers with outstanding amounts below ₹10 lakh must pay the entire sum in one lump sum before March 30.
If the outstanding amount is between ₹10 lakh and ₹25 lakh, the amount can be paid in two instalments. If the outstanding is more than ₹25 lakh, the payment can be spread across three instalments: 40% in the first 90 days, 30% in the next 90 days, and 30% in the final 90 days.
The spokesperson said OTS scheme addresses outstanding tax issues pertaining to excise and taxation department until June 30, 2017. It specifically resolves concerns related to seven VAT-related acts.
In his address, Chautala said the Haryana government has implemented this new scheme for the welfare of traders and industrialists. A new bill was also passed in the last assembly session for this purpose, enabling traders to receive exemptions in outstanding tax cases for the period till June 30, 2017. He said when Khattar discussed the implementation of the scheme, granting one-time exemption to traders in cases of outstanding tax amounts, he promptly gave his consent. He said the state government has initiated various schemes to provide relief to traders. Among these, a new scheme has been launched today, offering traders relief through the waiver of interest and penalties on seven types of outstanding taxes.
