Shimla. The Himachal Pradesh Government has announced the launch of the Sadhbhawana Legacy Cases Resolution Scheme, 2025 (Phase-II), offering taxpayers a one-time opportunity to settle pending arrears and cases related to Value Added Tax, Central Sales Tax, Entry Tax, Entertainment Tax and Luxury Tax. The scheme, which will remain open for three months from 1st September to 30th November 2025, aims to reduce litigation and unlock revenue tied up in long-pending disputes arising from subsumed enactments after the implementation of the Goods and Services Tax (GST) Act, 2017. Significantly, Phase-II of the scheme will also cover cases relating to petroleum products up to the financial year 2020-21, thereby addressing pendency under non-subsumed enactments as well.
According to a government spokesman, nearly 30,000 cases are currently pending across Himachal Pradesh under different subsumed and non-subsumed enactments, and with the introduction of Phase-II, the state expects to realize around Rs. 10 crore. The Excise and Taxation Department has appealed to all defaulters to seize this opportunity to amicably resolve their pending disputes and contribute to strengthening the state’s revenue base.
The spokesman further highlighted that the state has already implemented four similar Legacy Case Resolution Schemes with encouraging outcomes. Under the Himachal Pradesh (Legacy Cases Resolution) Scheme Rules, 2020, as many as 14,814 cases were disposed of, leading to revenue realization of Rs. 393.21 crore. The Himachal Pradesh Swarn Jayanti (Legacy Cases Resolution) Scheme, 2021 saw the resolution of 20,642 cases with revenue of Rs. 19.16 crore. In addition, 12,813 cases were resolved under the Himachal Pradesh Sadhbhawana Legacy Cases Resolution Scheme, 2025, bringing in Rs. 40.31 crore, while another 898 cases were settled under a separate phase of the Sadhbhawana Scheme with revenue of Rs. 15.03 crore. Collectively, the state has so far resolved over 49,160 legacy tax cases, generating a total revenue of Rs. 467.71 crore.
The state government believes that this second phase of the Sadhbhawana Scheme will not only reduce the mounting pendency of legacy cases but also ease the compliance burden on taxpayers while providing a much-needed revenue boost to the exchequer.
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