OTS Scheme for Pre-GST Tax | 01 Jan 2024

Why in News?

In Gurugram, Haryana Chief Minister Manohar Lal Khattar launched One Time Settlement-2023 (OTS) scheme to settle pending tax payments pertaining to pre-GST regime.

• This scheme will be operational from January 1 to March 30, 2024.

Key Points

• During the event, the CM also announced the opening of a GST training institute in collaboration with Haryana Institute of Public Administration (HIPA), Gurugram.
• The government plans to establish branches of the Goods and Services Tax (GST) Tribunal in Gurugram and Hisar to respond to the demands of traders and industry organizations.
• Under the OTS scheme, the tax amount will be 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.
  • In case of disputed taxes under ₹50 lakh, taxpayers will pay 30% of the outstanding amount and if the disputed tax amount is above ₹50 lakh, they will pay 50%.
  • In the third category, undisputed taxes will be assessed by the department where no appeal was made. Taxpayers will pay 40% if the amount is below ₹50 lakh and 60% if it is above ₹50 lakh. There will be 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.
• If the outstanding amount is between ₹10 lakh and ₹25 lakh, the amount can be paid in two installments.
  • If the outstanding is more than ₹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.
• OTS scheme addresses outstanding tax issues pertaining to the excise and taxation department until June 30, 2017. It specifically resolves concerns related to seven VAT-related acts.