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State Settlement Schemes announced so far

Settlement of Indirect Tax Disputes – Seize the opportunity

GST regime has replaced the plethora of indirect taxes levied by States and the Central Government. However, there is a huge backlog of appeals pending across various levels and under different statutes, both at State and Central level. This has a dual negative impact, on one hand there is a working capital blockage as well as increasing cost of litigation in the hands of the assesse/dealer/taxpayer and on the other hand, thousands of crores of revenue in taxes are blocked for the State and Centre.

Different types of schemes are being announced by various States with the basic objective of  mobilizing collection of revenue, mitigating existing litigation and reducing the workload on the departmental staff so as to concentrate on stabilizing GST mechanism.

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Stay updated with the key announcements related to the settlement schemes.

Maharashtra

Validity of the scheme : 01 April 2019 to 30 June 2019 (Phase-I) and 01 July to 31 July 2019 ( Phase-II).

Eligible Acts: MVAT/CST/BST/Entry Tax/TRU and other Acts.

Period covered: Disputes relating to the period on or before 31 March 2010 (Annexure-A) and the period on or after 01 April 2010 to 30 June 2017 (Annexure-B).

Extent of waiver: Depending on whether the application pertains to matters covered under Annexure-A or B and application is filed in Phase I or Phase II, waiver of disputed tax, interest and penalty would be in the following range;

Tax - Between 50% to 20%,

Interest- Between 90%  to 70%

Penalty- Between 95% to 80%.

Unique features: Extends waiver to yet to be taken up assessments, no rejection of applications for short payment, appeal mechanism in case of rejection.

Kerala

Validity of the scheme: 01 April 2019 to 30 September 2019.

Eligible Acts: Kerala General Sales Tax Act – ‘KGST’/CST/KVAT and other Acts.

Period covered: Open disputes periods up to 30 June 2017 (KVAT and CST Act) and 31 March 2018 (Kerala General Sales Tax Act –‘KGST’ and CST Act).

Extent of waiver: 100% waiver of interest or penalty on full payment of tax in arrears.

Unique features: Only application is required to be filed on or before 30 September 2019, payment of tax in arrears should be made before 31 March 2020 in maximum six installments.

Karnataka

Validity of the scheme; Up to 30 September 2019.

Eligible Acts: KST/CST/KVAT/Entry Tax and others.

Period covered: Disputes relating to assessments/re-assessments under KST and CST Acts ( for products under KST) for periods up to 31 March 2005; For KVAT,KTEG and CST Acts all assessments already completed or to be completed on or before 30 June 2019.

Extent of waiver: 100% waiver of interest or penalty on full payment of tax in arrears.

West Bengal

Validity of the scheme: Upto 31 March 2019.

Eligible Acts: WBST/CST/WBVAT/WBTEGLA etc.

Period covered: Disputes pending before any authority as on 31 October 2018 with respect to periods up to 30 June 2017

Extent of waiver: 65% waiver of tax and 100% waiver of interest or penalty on payment of 35% of tax in arrears (excepting disputes on pending CST forms).

Unique features: Availability of payment in installments.

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