The Punjab Cabinet on Monday approved the ‘Punjab One Time Settlement Scheme for Recovery of Outstanding Dues 2021’ to clear and settle their pending arrears.
Various trade associations raised a concern that they are facing difficulties in procuring statutory forms prescribed under the Central Sales Tax Act, 1956 for availing concessional/nil rate of tax on interstate transactions. They also urged the state government for settling their outstanding dues by introducing of One Time Settlement Scheme for the clearance and settlement of outstanding arrears under the Punjab Value Added Tax Act, 2005 and Central Sales-tax Act, 1956.
The Punjab cabinet cleared the one time settlement scheme for the traders with the objective to relief traders especially the small and medium businessmen to sail through these trying times amid COVID-19.
The GST was implemented with effect from July 1, 2017. There were several pending cases of pre-GST tax. For the smooth functioning in the GST regime, it is necessary and expedient to dispose of the pending assessments under the Punjab VAT Act, 2005 and CST Act, 1956, the statement said.
A spokesperson of the Chief Minister’s Office said that the scheme would be implemented from February 1, 2021, across the state under which all the dealers whose assessments have been framed up to December 31, 2020, could apply under the scheme till April 30, 2021.
The dealer can even submit additional statutory forms like C-forms which were not produced at the time of assessment, with the application form and will have to make the self-assessment and submit the proof of payment net tax payable as the result of the settlement. The concerned Ward in-charge would issue an order of settlement which would not be reopened in any proceeding by way of review or revision.
With implementation of OTS, the state exchequer would bear a financial burden of Rs 121.06 crore.
It may be recalled that COVID-19 has resulted in unprecedented situations for all sections of the society. Business community, especially the small dealers have suffered a lot due to lockdown and subsequent decline in the business activity.
Meanwhile, the Cabinet chaired by Chief Minister Capt Amarinder Singh also gave nod to amend the policy of ‘Appointments of Honour and Gratitude to the War Heroes or their Dependents’ with a view to mitigating the problems being faced by dependents of martyred/disabled soldiers in getting the jobs in line with the existing policy.
In another decision, the Cabinet approved the acquisition, conservation, and use of Mubarik Manzil Palace in Sangrur’s Malerkotla. To facilitate the acquisition, the state will provide Rs 3 crore to the owner Begum Munawwar-ul-Nisa as consideration for transferring the property with all its rights to the state government.
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