The Sadhbhawana Cases Legacy Resolution Scheme, 2023 was approved by the Himachal Pradesh State Cabinet on March 1st 2023 under the leadership of Chief Minister Sukhvinder Singh Suku to resolve approximately 50,000 cases involving pre-Goods and Services Tax (GST) taxes such as Value Added Tax (VAT) and Central Sales Tax (CST).
This is the third scheme of this kind to resolve the VAT and CST problems since 2020, according to the reports. The initial notification period for the scheme will be three months. Dealers who have had interest and penalties removed may deposit their taxes along with the required settlement amount.
The initiative was established to assist pre-GST taxpayers in resolving tax liabilities and disagreements. The plan allowed taxpayers to settle their unpaid taxes and discharge any other legal obligations. By forgoing interest and penalties, taxpayers would receive a significant relief.
Many taxpayers still struggle to resolve their pre-GST issues, even after the GST was implemented in 2017. The Himachal Pradesh Swarn Jayanti (Legacy Cases Resolution) Scheme-2021 has earned Rs 91 crore in revenue and was initially valid for four months. However there are many cases pending.
With the implementation of the two schemes, the total number of pending cases has significantly decreased and is now at 50,000. In January 2020, the first such scheme was started. If all defaulters had applied, revenue of between Rs 620 crore and Rs 670 crore was anticipated. Yet, it resulted in the recovery of Rs 393 crore, a sizable sum produced by such a plan in its initial effort.
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