• November 15, 2023

Punjab Launches One Time Settlement Scheme to Benefit Trade and Industry

Punjab Launches One Time Settlement Scheme to Benefit Trade and Industry

Punjab Launches One Time Settlement Scheme to Benefit Trade and Industry

The Punjab government has launched a one-time settlement (OTS) scheme for traders and industrialists to clear their outstanding dues. The scheme will be open from November 15, 2023, to March 15, 2024. Under the scheme, taxpayers with a total demand of less than Rs 1 lakh will be eligible for a complete waiver of all dues. Taxpayers with a total demand of Rs 1 lakh to Rs 1 crore will be eligible for a waiver of 100% interest, 100% penalty, and 50% of the tax amount. The government aims to reduce the compliance burden of legacy cases and encourage enhanced compliance under GST through this scheme.

Key Highlights:

  • Total Pending Arrears: Rs. 6086.25 crore

  • Waiver of Pending Dues: Complete waiver of Rs. 528.38 crore to benefit 39,787 taxpayers with a total demand below Rs. 1 Lakh.

  • Slab-wise Waiver of Tax, Interest, and Penalty:

    • Up to Rs. 1 Lakh: Complete waiver of tax, interest, and penalty
    • Rs. 1 Lakh to Rs. 1 Crore: 100% waiver of interest, 100% waiver of penalty, and 50% waiver of tax
  • Scheme Eligibility:

    • Taxpayers with an assessment framed till March 31, 2023, by the Taxation Department, Punjab
    • Dues pending under the Punjab General Sales Tax Act, 1948
    • Central Sales Tax Act, 1956
    • Punjab Infrastructure (Development and Regulation) Act, 2002
    • Punjab Value Added Tax Act, 2005
  • Application Deadline: March 15, 2024

Benefits of the Scheme:

  • Reduced compliance burden of legacy cases
  • Enhanced compliance under GST
  • Reduced litigation
  • Smooth administration of GST
  • Optimum utilization of departmental resources

The Punjab Finance Minister, Advocate Harpal Singh Cheema, has appealed to traders and industrialists to avail of this opportunity soon. He emphasized that no application for settlement of outstanding dues under this Scheme would be entertained after March 15, 2024.

The Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2023 is a timely initiative that will provide significant relief to traders and industrialists in Punjab. The scheme is expected to reduce the compliance burden of legacy cases and encourage enhanced compliance under GST.

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