One Time Settlement-2023 (OTS) Scheme to settle pre-GST tax liabilities launched by Excise and Taxation Department, Haryana

Chief Minister of Haryana 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.

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 –

1. the Haryana Value Added Tax Act, 2003,
2. the Central Sales Tax Act, 1956,
3. the Haryana Local Area Development Tax Act, 2000,
4. the Haryana Tax on Entry of Goods in Local Area Act, 2008,
5. the Haryana Luxury Tax Act, 2007,
6. the Punjab Entertainment Fee Act, and
7. the Haryana General Sales Tax Act, 1973.

Benefit of the Scheme will be available in four categories:

Under the OTS scheme, the tax amount is divided into four categories, starting with –

1. an undisputed fee category for cases without dispute. Taxpayers will pay 100% of the amount in this category, with no penalties or interest.
2. 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%.
3. 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.
4. 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.

Installment options

While offering tax relief, the OTS scheme also provides easy installment options.

1. Taxpayers with outstanding amounts below Rs 10 lakh must pay the entire sum in one lump sum before March 30th.
2. For Rs 10 lakh to Rs 25 lakh, the amount can be paid in two installments of 52% each.
3. 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.

Rs 66,000 crore revenue will be achieved through one-time settlement-2023

The Deputy Chief Minister said that the state has collected Rs 46,000 crore in taxes thus far. After the implementation of the new OTS scheme, if businessmen, chartered accountants, and tax lawyers co-operate, it is expected that tax collection in the state by March 31 can reach Rs 66,000 crores. This surpasses the Chief Minister’s target of Rs 58,000 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.

Read more at: Press Release