Haryana Tax Dept. Launches One Time Settlement-2023 Scheme

The Haryana Government has launched the One Time Settlement-2023 Scheme to settle pre-GST tax liabilities.

Addressing a long-standing request from Haryana's traders and business community to settle pending tax payments from before the implementation of GST, Chief Minister Sh. Manohar Lal today launched the One Time Settlement-2023 (OTS) Scheme through the Excise and Taxation Department. The scheme will be operational from January 1, 2024, to March 30, 2024.

From January 1, 2024, to March 30, 2024, businesses have the opportunity to settle pre-GST tax liabilities under the OTS-2023 scheme. Taxes are categorised into four groups, with exemptions from interest and penalties for cases related to seven tax acts in effect before GST. Additionally, Chief Minister Sh. Manohar Lal announced the opening of a GST Training Institute in collaboration with HIPA, Gurugram.

Under the OTS scheme, the tax amount is 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.

For disputed taxes under Rs 50 lakh, taxpayers will pay 30% of the outstanding amount. For disputed taxes above Rs 50 lakh, they will pay 50%.

The undisputed taxes were assessed by the department where no appeal was made. Taxpayers will pay 40% if the amount is below Rs 50 lakh and 60% if it's above Rs 50 lakh. This category also offers relief from penalties and interest.

The outstanding amounts are 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. Taxpayers with outstanding amounts below Rs 10 lakh must pay the entire sum in one lump sum before March 30th. For Rs 10 lakh to Rs 25 lakh, the amount can be paid in two instalments of 52% each. If the outstanding is more than Rs 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.

One Time Settlement Scheme addresses outstanding tax issues from the Excise and Taxation Department until June 30, 2017. It specifically resolves concerns related to seven VAT-related acts, including the Haryana Value Added Tax Act, 2003, the Central Sales Tax Act, 1956, the Haryana Local Area Development Tax Act, 2000, the Haryana Tax on Entry of Goods in Local Area Act, 2008, the Haryana Luxury Tax Act, 2007, the Punjab Entertainment Fee Act, and the Haryana General Sales Tax Act, 1973."

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