Haryana CM announces OTS scheme for pre-GST tax liabilities

Haryana Chief Minister Manohar Lal Khattar introduced the One Time Settlement-2023 (OTS) Scheme on Sunday, addressing the persistent demands of the state's business and trader community to resolve pre-GST tax liabilities. The scheme is slated for operation from January 1 to March 30, 2024.

As per an official announcement, businesses will have an opportunity during this period to settle pre-GST tax obligations under the OTS-2023 scheme. The scheme categorises taxes into four distinct groups, providing waivers on interest and penalties pertaining to seven tax legislations that were effective before the GST regime.

Alongside the OTS-2023 launch in Gurugram, Chief Minister Khattar also declared the establishment of a GST Training Institute in partnership with HIPA, Gurugram. The event witnessed Deputy Chief Minister Dushyant Chautala, responsible for the Excise and Taxation Department, extend New Year greetings to the populace.

Under the OTS scheme's framework, tax liabilities are segmented into four categories. The first category encompasses undisputed amounts, requiring taxpayers to settle the full sum, devoid of any penalties or interest. For contentious taxes under Rs 50 lakh, the payable amount is fixed at 30 per cent of the outstanding sum, whereas amounts exceeding Rs 50 lakh entail a 50 per cent payment.

The scheme's third category pertains to undisputed taxes appraised by the department, without any appeal. Taxpayers are mandated to clear 40 per cent of the amount for sums below Rs 50 lakh and 60 per cent for those surpassing this threshold. Similarly, the fourth category addresses disparities in tax rates, necessitating a payment equivalent to 30 per cent of the total.

To facilitate the ease of compliance, the OTS scheme extends flexible installment options. Taxpayers with liabilities below Rs 10 lakh must remit the entire sum by March 30th. For amounts ranging between Rs 10 lakh and Rs 25 lakh, a bifurcation into two equal payments of 52 per cent each is permissible. Liabilities exceeding Rs 25 lakh can be settled in three installments: 40 per cent within the initial 90 days, followed by 30 per cent in each subsequent 90-day interval.

Notably, the OTS Scheme addresses unresolved tax matters under the Excise and Taxation Department up to June 30, 2017, encompassing seven VAT-centric legislations such as the Haryana Value Added Tax Act of 2003 and the Haryana General Sales Tax Act of 1973. Chautala emphasised that the state's introduction of this initiative, supported by recent legislative measures, aims to alleviate tax burdens for traders and industrialists.

Chautala further highlighted the state's cumulative tax collection amounting to Rs 46,000 crore to date. With the OTS scheme's rollout and collaborative efforts from business entities, chartered accountants, and legal professionals, the state anticipates escalating its tax receipts to Rs 66,000 crore by March 31, surpassing the earlier target of Rs 58,000 crore set by the Chief Minister.

(With PTI inputs)