Haryana CM launches one-time tax settlement scheme for traders

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Gurugram, December 31

Chief Minister Manohar Lal Khattar on Sunday launched the one-time settlement-2023 (OTS) scheme that would give traders an opportunity to settle pre-GST tax liabilities. The scheme will be operational from January 1 to March 30.

“This had been a long pending demand of the business community and traders. We have given them this scheme as a New Year’s gift. The move will enhance the state exchequer as well,” Khattar said. The Chief Minister also announced opening of a GST Training Institute in collaboration with Haryana Institute of Public Administration (HIPA), Gurugram.

Taxes were categorised into four groups with exemptions from interest and penalties for cases related to seven tax Acts in effect before the imposition of GST.

Under the scheme, the tax amount was 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 per cent.

The third category applies to undisputed taxes 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 fourth category included 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 has installment option. Taxpayers with outstanding amounts below Rs 10 lakh must pay the entire sum in one lump sum before March 30. For Rs 10 lakh to Rs 25 lakh, the amount can be paid in two installments. If the outstanding is more than Rs 25 lakh, the payment can be spread across three installments: 40% in the first 90 days, 30% in the next 90 days, and 30% in the final 90 days.

Deputy CM Dushyant Chautala said the state has one of best tax structure in the country and collected Rs 46,000 crore in taxes so far. “After the implementation of the OTS scheme, if businessmen, chartered accountants and tax lawyers cooperate, it is expected that tax collection in the state by March 31 can reach Rs 66,000 crore.”

New year’s gift for business community

This had been a long-pending demand of the business community and traders. We have given them this scheme as a New Year’s gift. The move will enhance the state exchequer as well. — Manohar Lal Khattar, Chief Minister