The Haryana Government has initiated the One-Time Settlement (OTS) Scheme, operational from January 1 to March 30, 2024. Those seeking the benefits of this amnesty program must submit their applications by March 30th.
In response to persistent appeals from traders and the business community in Haryana seeking resolution for pending tax payments predating the implementation of GST, Chief Minister Sh. Manohar Lal inaugurated the OTS Scheme on 31st December 2023, facilitated by the Excise and Taxation Department.
From January 1 to March 30, 2024, businesses have a unique opportunity to reconcile outstanding pre-GST tax liabilities through the OTS-2023 initiative. Taxes are classified into four distinct groups, with cases related to seven tax acts in force before GST eligible for exemptions from interest and penalties. In an additional development, Chief Minister Sh. Manohar Lal unveiled plans for the establishment of a GST Training Institute, in collaboration with HIPA, Gurugram.
Benefits of the Scheme
Within the framework of the One-Time Settlement (OTS) scheme, the tax liability is systematically categorized into four distinct segments.
The first classification pertains to an undisputed fee category, tailored for cases devoid of disputes. Taxpayers falling under this category are mandated to remit the full amount, constituting 100%, with the added advantage of being exempt from penalties and interest.
Secondly, in instances of contested taxes amounting to less than Rs. 50 lakh, taxpayers are obliged to settle 30% of the outstanding dues. Conversely, for disputed taxes exceeding the Rs 50 lakh threshold, the stipulated settlement percentage stands at 50%.
The third tax category is applicable to undisputed taxes assessed by the department, where no appeals have been filed. For amounts falling below Rs 50 lakh, taxpayers are required to remit 40%, while those surpassing Rs 50 lakh must pay 60%. Importantly, this category provides a reprieve from penalties and interest, facilitating a streamlined resolution process.
The fourth and final category addresses outstanding amounts arising from disparities in tax rates. In this scenario, the government has implemented a discounted approach, mandating taxpayers to fulfill only 30% of the total amount.
The Deputy Chief Minister revealed that the state has successfully amassed Rs 46 thousand crore in taxes thus far. With the introduction of the new One-Time Settlement (OTS) scheme, an optimistic projection anticipates an increase in tax collection to Rs 66 thousand crores by March 31, contingent on the cooperation of businessmen, chartered accountants, and tax lawyers. This forecast surpasses the Chief Minister’s initial target of Rs 58 thousand crore for the department.
Read More: Haryana Govt launches One Time Tax Settlement Scheme for unsettled Pre-GST Dues
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