Taxpayers facing a total demand of up to ₹1 crore as of 31 March, 2023, are eligible to apply for settlement under this scheme.
Published Nov 16, 2023 | 10:47 AM ⚊ Updated Nov 16, 2023 | 10:47 AM
Harpal Singh Cheema. (Supplied)
In a bid to woo traders, the Punjab Government has introduced a one-time settlement (OTS) scheme for the recovery of outstanding GST dues of around ₹6000 crore.
The move, according to the government, will reduce the compliance burden of legacy cases and enable traders and industrialists to enhance their compliance under the Goods and Services Tax (GST).
Punjab Finance Minister Harpal Singh Cheema said that the total pendency of tax, interest and penalty of demand up to ₹1 Crore outstanding as of 31 March 2023 amounts to ₹6086.25 crore.
He said that the scheme has proposed a complete waiver of the pending dues of ₹528.38 crore to benefit 39,787 taxpayers whose amount of total demand was less than ₹1 Lakh.
According to the scheme the taxpayers whose assessment has been framed till 31 March 2023, by the state taxation department shall be eligible to apply for settlement of their dues under this scheme.
He said that the scheme shall be applicable to pay dues pending under the Punjab General Sales Tax Act, 1948, the Central Sales Tax Act, 1956, the Punjab Infrastructure (Development and Regulation) Act, 2002, and the Punjab Value Added Tax Act, 2005.
The taxpayers with the amount of total demand (tax, penalty and interest) up to ₹1 Crore as of 31 March 2023, shall be eligible to apply for settlement under this scheme.
“This scheme would provide a complete waiver of tax, interest and penalty in cases with pending dues below ₹1 Lakh, whereas waiver of 100 percent interest, 100 percent penalty and 50 percent of the tax amount would be applicable on the pending dues from ₹1 Lakh to ₹1 Crore,” said Cheema.
Appealing to the traders and industrialists to avail this opportunity soon, Cheema said the government is giving a four-month window starting 15 November 2023, to 15 March 2024, to avail of this scheme.
“The OTS for pre-GST arrears would not only reduce litigation of existing legacy cases but would also help in the smooth administration of GST by the taxation authorities ensuring the optimum utilization of the resources of the department”, he added.
