In a bid to recoup outstanding dues amounting to nearly Rs 30,000 crore from traders, the Haryana Government is set to introduce a one-time settlement (OTS) scheme focused on resolving pending VAT cases from the pre-GST era.
Insiders reveal that the scheme is slated for discussion during the upcoming Haryana Cabinet meeting scheduled for tomorrow. Mirroring other successful OTS initiatives across various departments, the government is contemplating the waiver of interest and penalties, stipulating that traders must settle the entire tax amount.
A significant number of small-scale entrepreneurs find themselves indebted to the government under the previous VAT regime and other Acts before April 1, 2018. Chief Minister Manohar Lal Khattar has officially announced the OTS to address this long standing issue.
Sources indicate that the scheme is expected to be in effect from December until the conclusion of the financial year, and the entire process will be facilitated online.
The government’s objective is twofold: to augment its revenue stream and alleviate the burden of old arrears. The generated tax revenue will be earmarked for vital development and welfare projects. As the Assembly elections approach in October next year, the government is strategically endeavoring to win over diverse segments of society by making decisions that prioritize the well-being of the people. Additionally, the OTS aims to provide respite to traders grappling with mounting dues, offering a lifeline to those overwhelmed by accrued penalties over time.
This initiative underscores the government’s commitment to fiscal prudence and its dedication to fostering a business-friendly environment, with a view towards fostering economic growth and prosperity in the region.
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