The best thing we like about the scheme is that it is a very wide scheme which covers not only the dispute tax but covers the undisputed tax also which has not been paid by assessee and also covers the admitted tax which was filed in the return by the dealer and in all the cases the interest and penalty have been waived of so, we congratulate the haryana government for releasing such as assessee friendly scheme and we believe that this will be a very successful scheme for the government as well as trade – CA Ankit Gulgulia (Jain)
Addressing a long-standing request from Haryana’s traders and business community to settle pending tax payments from before the implementation of GST, Chief Minister Sh. Manohar Lal today 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.
From January 1, 2024, to March 30, 2024, businesses have the opportunity to settle pre-GST tax liabilities under the OTS-2023 scheme. 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 announced the opening of a GST Training Institute in collaboration with HIPA, Gurugram.
During the inauguration of OTS-2023 at Gurugram, on Sunday, the Chief Minister also extended New Year wishes to the state. Deputy Chief Minister Shri Dushyant Chautala, who oversees the Excise and Taxation Department, also addressed the programme.
Benefit of the Scheme will be available in four categories
Under the OTS scheme, the tax amount is divided into four categories, starting with 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%.
The third category applies to 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.
The 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.
While offering tax relief, the 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.
This One Time Settlement Scheme addresses outstanding tax issues from the Excise and Taxation Department until June 30, 2017. It specifically resolves concerns related to seven VAT-related acts, including the Haryana Value Added Tax Act, 2003, the Central Sales Tax Act, 1956, the Haryana Local Area Development Tax Act, 2000, the Haryana Tax on Entry of Goods in Local Area Act, 2008, the Haryana Luxury Tax Act, 2007, the Punjab Entertainment Fee Act, and the Haryana General Sales Tax Act, 1973.”
Expanding Welfare Programs
The Chief Minister emphasized that the dispute resolution program was born from a commitment to public welfare and societal service. The One Lump Sum Settlement Scheme-2023 stands as a testament to this dedication. He further highlighted the success of numerous programs in alleviating people’s struggles.
Urban Ownership Scheme Widens its Reach
Specifically, the Chief Minister announced the expansion of the Urban Ownership Scheme, an initiative granting ownership rights to shopkeepers occupying local body land. This expansion will now encompass shopkeepers who pay rent to the local body for their shops built on land managed by various departments. He reiterated the dual benefits of the scheme: providing relief to honest taxpayers while simultaneously boosting state revenue.
Haryana has the best tax infrastructure in the country
While addressing the gathering, Deputy Chief Minister, Sh. Dushyant Singh Chautala said that the Haryana Government has implemented this new scheme for the welfare of traders and industrialists. A new bill was also passed in the last assembly session for this purpose, enabling traders to receive exemptions in outstanding tax cases for the period till June 30, 2017. He said that when Chief Minister Sh. Manohar Lal discussed the implementation of the scheme, granting one-time exemption to traders in cases of outstanding tax amounts, he promptly gave his consent. Today, he himself has come to announce the program. He said that the state government, during its tenure, has initiated various schemes to provide relief to traders. Among these, a new scheme has been launched today, offering traders relief through the waiver of interest and penalties on seven types of outstanding taxes. Despite being a small state, Haryana ranks among the first five states in the country in terms of tax collection, owing to the cooperation of officers, employees, and taxpayers of the Excise and Taxation Department. Today, Haryana boasts the best infrastructure in the country regarding taxation.
Rs 66 thousand crore revenue will be achieved through one-time settlement-2023
The Deputy Chief Minister said that the state has collected Rs 46 thousand crore in taxes thus far. After the implementation of the new OTS scheme, if businessmen, chartered accountants, and tax lawyers cooperate, it is expected that tax collection in the state by March 31 can reach Rs 66 thousand crores. This surpasses the Chief Minister’s target of Rs 58 thousand crore for the department. Responding to the demands of traders and industry organizations, the government plans to establish branches of the GST Tribunal in Gurugram and Hisar. To modernize their working style and easily resolve GST and tax collection issues, employees and officers of the department have received training from national-level institutions such as CBI and Central Excise. He assured the businessmen and advocates present that if needed, a help desk and online chatbot would be established in the Resource Building for the new scheme.
Excise and Taxation Commissioner, Sh. Ashok Kumar Meena welcomed the Chief Minister and Deputy Chief Minister to the programme. Principal Secretary of the department, Sh. Devinder Singh Kalyan, provided necessary information related to various aspects of the scheme and revenue collection in the state. Meanwhile, Sh. Bal Kishan Aggarwal, Chairman of Traders Welfare Board, Haryana, expressed gratitude to the Chief Minister for the schemes benefiting traders in the state. Various business organizations and the Tax Bar Association of the state thanked the Chief Minister and Deputy Chief Minister by presenting shawls and bouquets on the occasion of the scheme’s inauguration.
For the Official Notifications: Notification No. 71/ST-1 , Notification No. 72/ST-1
The Press Release can be accessed at: https://haryanacmoffice.gov.in/index.php/31-december-2023-0#:~:text=Manohar%20Lal%20today%20launched%20the,under%20the%20OTS%2D2023%20scheme.
