In response to a longstanding request from Haryana’s traders and business community to resolve pre-GST tax liabilities, Chief Minister Manohar Lal Khattar officially announced the One Time Settlement-2023 (OTS) Scheme on Sunday.
Commencing from January 1, 2024, to March 30, 2024, the scheme offers businesses the opportunity to settle their pre-GST tax liabilities. The OTS-2023 scheme classifies taxes into four groups, granting exemptions from interest and penalties for cases related to seven tax acts applicable before GST.
Furthermore, Chief Minister Manohar Lal announced the establishment of a GST Training Institute in collaboration with HIPA, Gurugram.
During the inauguration of OTS-2023 in Gurugram on Sunday, the Chief Minister also expressed new views to the state. Deputy Chief Minister Dushyant Chautala, who administers the Excise and Taxation Department, also spoke at the event.
Read Also:- An Overview of GST Liability U/S 85 for Business Transfer
As per the OTS scheme, there are four categories in which the tax amount is divided, with the first category being undisputed fees for cases without any disputes.
Taxpayers are required to pay 100% of the amount in this category without facing penalties or interest.
For taxes in dispute below Rs 50 lakh, taxpayers are obligated to pay 30% of the outstanding amount. If the disputed taxes exceed Rs 50 lakh, the payment requirement increases to 50%.
The third category pertains to taxes that are undisputed and measured by the department without any appeals. If the amount is below Rs. 50 lakh in this category, taxpayers will pay 40%. And if the amount is more than Rs 50 lakh, taxpayers must pay 60%. This category also provides relief from penalties and interest.
In the fourth category, the outstanding sums due to discrepancies in tax rates are included in this. In this case, the government has reduced the amount, necessitating taxpayers to pay only 30% of the total.
While providing tax relief, the OTS scheme also presents convenient instalment choices. Taxpayers with outstanding amounts below Rs 10 lakh must make a lump sum payment of the entire sum before March 30th. For amounts ranging from Rs 10 lakh to Rs 25 lakh, the payment can be made in two instalments, each amounting to 52%.
Also Read:- PB & HR High Court Deletes the Order U/S 148a(b) and INR 10K Penalty on the Tax Dept
If the outstanding amount exceeds Rs 25 lakh, the payment can be divided into three instalments: 40% in the first 90 days, 30% in the following 90 days, and in the final 90 days, 30% is applicable.
This OTS Scheme deals with unresolved tax matters from the Excise and Taxation Department until June 30, 2017.
It particularly deals with concerns related to seven VAT-related acts. These seven VAT acts are- 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.
While speaking to the audience, Chautala mentioned that the Haryana Government has introduced this new scheme for the benefit of traders and industrialists. A recent bill was also passed in the previous assembly session for this purpose, allowing traders to receive exemptions in outstanding tax matters until June 30, 2017.
The state has generated Rs 46,000 crore in taxes till now. With the implementation of the new OTS scheme and cooperation from businessmen, chartered accountants, and tax lawyers, it is anticipated that tax collection in the state can reach Rs 66,000 crores by March 31. This is more than what was the Chief Minister’s target of Rs 58,000 crore for the department, stated Chautala.
Download OTS Notification No 71/ST-1
Download OTS Notification No 72/ST-1
