The Maharashtra legislature passed a bill to furnish for the settlement of the arrears of tax, interest, penalty, or late fee that were subjected to pay beneath acts before the execution of GST.
Finance minister Ajit Pawar mentioned that this action will provide an advantage to the small industries, traders, and other dealers who have suffered from financial stress because of covid-19.
“A large number of cases involving outstanding dues and litigations are pending. In order to unlock the amount involved in the outstanding dues and reduce the old pending litigations, the government considers it expedient to provide for a scheme for settlement of arrears of tax, interest, penalty or late fee, Mr. Pawar specified.”
With Effect from 1st April 2022
From April 1, Maharashtra settlement of arrears of tax, interest, penalty, or late fee act, 2022 would come into effect. The individuals or businesses could perform the payment of arrears between April 1 to September 30. Arrears defined by statutory order for a particular duration as of April 1, which are ₹10,000 or less per financial year will be written off. “More than one lakh traders will be benefited from this, Mr Pawar mentioned.”
People with arrears of Rs 10 lakh or lower would choose for bulk payment of 20% of the dues. If in case, 80% would be waived and this would provide the advantage of nearly 2.20 lakh traders. “The scheme safeguards the revenue in respect of undisputed tax with an incentive towards the partial waiver of disputed tax, interest, penalty or the late fee. For bigger dealers who are facing financial crunch, the option to pay the amount by instalments has been provided,” the minister sees. Both the assembly and the official passes the bill.
