Maharashtra's Amnesty Scheme For Pre-GST Cases
The Maharashtra government has introduced an amnesty scheme for pending sales tax cases.
While presenting the state's budget for 2022-23, Maharashtra's deputy chief minister Ajit Pawar, who also holds the finance portfolio, announced an amnesty scheme for pending sales tax dues.
Titled as Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Scheme 2022, the scheme will be applicable for all pending dues as of June 21, 2017, i.e., before the introduction of Goods and Services Tax.
The window to avail benefits under the scheme will be between April 1 and Sept. 30, 2022.
Here are the key aspects of the scheme:
To avail the benefit, dealers will have to unconditionally withdraw their pending appeals.
Arrears of Rs 10,000 or less per year will be waived off completely. Almost 1 lakh small dealers will benefit from this, Pawar said in his budget speech.
As of April 1, 2022, dealers having arrears up to Rs 10 lakh will have the option to pay 20 % of the total amount in lump sum. Waiver will be granted for the remainder amount. This is likely to benefit over two lakh medium level dealers.
For pending cases up to March 31, 2005: Dealers having dues above 10 lakh or who do not opt for the lump sum option will have to pay 100% of the undisputed tax, 30% of the disputed tax, 10%of the interest, and five% of the penalty.
For dues between April 1, 2005 - June 30, 2017: Dealers will have to pay 50% of the disputed tax, 15% of the interest, and five% of the penalty. Once payment is made, balance arrears will be waived off.
To avail the scheme, taxpayers will have to pay the requisite amount within the stipulated date. For dealers having arrears beyond Rs 50 lakh, there's an option to pay the amount in installments.