Haryana Government Launched One Time Settlement Scheme

The Chief Minister of Haryana, Manohar Lal, has launched the One Time Settlement-2023 (OTS) Scheme through the Excise and Taxation Department. 

About OTS Scheme

The scheme aims to resolve any outstanding tax payments that were due before the implementation of GST. 

• This scheme will be in effect from January 1, 2024, until March 30, 2024. It offers businesses the chance to clear their pre-GST tax liabilities.
• Businesses can settle pre-GST tax obligations from January 1 to March 30, 2024 using the OTS-2023 scheme.

Categories Under OTS Scheme

Taxes are classified into four categories, with exemptions from interest and penalties for cases related to seven effective tax acts before GST.

1. For cases without disputes, taxpayers must pay 100% of the amount due without penalties or interest.

2. For disputed taxes under Rs 50 lakh, taxpayers are required to pay 30% of the outstanding amount.

3. For undisputed taxes assessed by the department, taxpayers must pay 40% (for amounts below Rs 50 lakh) or 60% (for amounts above Rs 50 lakh) with relief from penalties and interest.

4. For outstanding amounts due to tax rate differences, taxpayers must pay only 30% of the total amount due.

• The OTS scheme offers taxpayers flexible instalment options depending on the outstanding amount. If the outstanding amount is below Rs 10 lakh, the entire sum must be paid by March 30th. 
• If the outstanding amount is between Rs 10 lakh and Rs 25 lakh, it can be paid in two instalments of 52% each. 
• For amounts exceeding Rs 25 lakh, it can be paid in three instalments: 40% in the first 90 days, 30% in the following 90 days, and the remaining 30% in the final 90 days.
• The Chief Minister emphasized that the program aims to promote public welfare and serve society, reflecting the government's commitment to these goals.

GST is a unified tax system that replaces multiple indirect taxes levied by central and state governments. Both the Central and State Governments have authority to levy GST