Home GST HR Govt Introduces One-Time Tax Settlement Scheme for Pre-GST Liabilities

HR Govt Introduces One-Time Tax Settlement Scheme for Pre-GST Liabilities

HR Govt Introduces One-Time Tax Settlement Scheme for Pre-GST Liabilities
One-Time Tax Settlement Scheme Pre-GST Liabilities

In response to a longstanding request from Haryana’s merchants and enterprise group to resolve pre-GST tax liabilities, Chief Minister Manohar Lal Khattar formally introduced the One Time Settlement-2023 (OTS) Scheme on Sunday.

Commencing from January 1, 2024, to March 30, 2024, the scheme gives companies the chance to settle their pre-GST tax liabilities. The OTS-2023 scheme classifies taxes into 4 teams, granting exemptions from curiosity and penalties for instances associated to seven tax acts relevant earlier than GST.

Moreover, Chief Minister Manohar Lal introduced the institution of a GST Coaching Institute in collaboration with HIPA, Gurugram.

In the course of the inauguration of OTS-2023 in Gurugram on Sunday, the Chief Minister additionally expressed new views to the state. Deputy Chief Minister Dushyant Chautala, who administers the Excise and Taxation Division, additionally spoke on the occasion.

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As per the OTS scheme, there are 4 classes by which the tax quantity is split, with the primary class being undisputed charges for instances with none disputes.

Taxpayers are required to pay 100% of the quantity on this class with out dealing with penalties or curiosity.

For taxes in dispute under Rs 50 lakh, taxpayers are obligated to pay 30% of the excellent quantity. If the disputed taxes exceed Rs 50 lakh, the fee requirement will increase to 50%.

The third class pertains to taxes which might be undisputed and measured by the division with none appeals. If the quantity is under Rs. 50 lakh on this class, taxpayers can pay 40%. And if the quantity is greater than Rs 50 lakh, taxpayers should pay 60%. This class additionally offers reduction from penalties and curiosity.

Within the fourth class, the excellent sums as a consequence of discrepancies in tax charges are included on this. On this case, the federal government has lowered the quantity, necessitating taxpayers to pay solely 30% of the whole.

Whereas offering tax reduction, the OTS scheme additionally presents handy instalment decisions. Taxpayers with excellent quantities under Rs 10 lakh should make a lump sum fee of your entire sum earlier than March thirtieth. For quantities starting from Rs 10 lakh to Rs 25 lakh, the fee could be made in two instalments, every amounting to 52%.

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If the excellent quantity exceeds Rs 25 lakh, the fee could be divided into three instalments: 40% within the first 90 days, 30% within the following 90 days, and within the last 90 days, 30% is relevant.

This OTS Scheme offers with unresolved tax issues from the Excise and Taxation Division till June 30, 2017.

It notably offers with issues associated to seven VAT-related acts. These seven VAT acts are- the Haryana Worth Added Tax Act, 2003, the Central Gross sales Tax Act, 1956, the Haryana Native Space Growth Tax Act, 2000, the Haryana Tax on Entry of Items in Native Space Act, 2008, the Haryana Luxurious Tax Act, 2007, the Punjab Leisure Charge Act, and the Haryana Common Gross sales Tax Act, 1973.

Whereas talking to the viewers, Chautala talked about that the Haryana Authorities has launched this new scheme for the advantage of merchants and industrialists. A latest invoice was additionally handed within the earlier meeting session for this objective, permitting merchants to obtain exemptions in excellent tax issues till June 30, 2017.

The state has generated Rs 46,000 crore in taxes until now. With the implementation of the new OTS scheme and cooperation from businessmen, chartered accountants, and tax legal professionals, it’s anticipated that tax assortment within the state can attain Rs 66,000 crores by March 31. That is greater than what was the Chief Minister’s goal of Rs 58,000 crore for the division, acknowledged Chautala.


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