Haryana Govt. Introduced One Time Settlement Scheme providing opportunity to settle Pre-GST tax liabilities:
Haryana Govt. on December 31, 2023 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.
As per the scheme businesses have the opportunity to settle pre-GST tax liabilities under the name OTS-2023.
Taxes are categorized 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 while launching the scheme also announced the opening of a GST Training Institute in collaboration with HIPA, Gurugram.
The Categories prescribed in the scheme are
- 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%.
- 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.
- Fourth category includes outstanding amounts due to differences in tax rates. Here, the government has discounted the amount, requiring taxpayers to pay only 30% of the total.
OTS scheme also provides easy installment 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 installments of 52% each. 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.
The Official press release can be accessed at https://haryanacmoffice.gov.in/31-december-2023-0