Govt launches scheme to settle tax cases, to continue till Nov 30

The state government has launched the Himachal Pradesh Sadhbhawana Legacy Cases Resolution Scheme, 2025, (Phase-II), providing taxpayers an opportunity for one-time settlement of pending arrears and cases related to Value Added Tax, Central Sales Tax, Entry Tax, Entertainment Tax and Luxury Tax. The scheme, which started on September 1, would continue till November 30.

A government spokesperson said that the objective of the scheme was to reduce litigation and realise revenue from long-pending cases that arose under the subsumed enactments after the introduction of the Goods and Services Tax Act, 2017. The phase-II of the Sadhbhawana Scheme would also cover cases relating to petroleum products up to 2020-21, which would significantly help in reducing pendency under non-subsumed enactments as well.

The Excise and Taxation Department has urged all defaulters to avail of the opportunity to amicably resolve their pending cases and contribute towards strengthening the state’s revenue. The spokesman said that nearly 30,000 cases were pending under various subsumed and non-subsumed enactments in the state and around Rs 10 crore was likely to be realised under the phase-II of the scheme for the exchequer.

The spokesperson said that four similar legacy case resolution schemes launched earlier had shown encouraging results. Under the Himachal Pradesh (Legacy Cases Resolution) Scheme Rules, 2020, a total of 14,814 cases were disposed of and Rs 393.21 crore was realised. Similarly, under the Himachal Pradesh Swarn Jayanti (Legacy Cases Resolution) Scheme, 2021, as many as 20,642 cases were resolved, yielding a revenue of Rs 19.16 crore. Besides, 12,813 cases were resolved under the Himachal Pradesh Sadhbhawana Legacy Cases Resolution Scheme, 2025, and a amount of Rs 40.31 crore was collected. As many as 898 cases were settled under another phase of the Sadhbhawana Scheme and Rs 15.03 crore was realised. So far, over 49,160 cases had been resolved in the state and Rs 467.71 crore realised.