The Maharashtra legislature on Monday passed a Bill to provide for settlement of arrears of tax, interest, penalty or late fee that were payable under Acts prior to the implementation of Goods and Services Tax (GST).
Finance Minister Ajit Pawar said the move would benefit small industries, traders and other dealers who have undergone financial stress due to COVID-19. “A large number of cases involving outstanding dues and litigations are pending. In order to unlock the amount involved in the outstanding dues and reduce the old pending litigations, the government considers it expedient to provide for a scheme for settlement of arrears of tax, interest, penalty or late fee,” Mr. Pawar said.
To come into effect from April 1
The Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2022, will come into effect from April 1. Individuals or businesses can make the payment of arrears between April 1 to September 30. Arrears determined by statutory order for a specified period as on April 1, which are ₹10,000 or less per financial year shall be written off. “More than one lakh traders will be benefited from this,” Mr. Pawar stated.
Those with arrears of ₹10 lakh or less can opt for payment of lump sum payment of 20% of the dues. In that case, 80% will be waived and it will benefit around 2.20 lakh traders. “The scheme safeguards the revenue in respect of undisputed tax with an incentive towards the partial waiver of disputed tax, interest, penalty or the late fee. For bigger dealers who are facing financial crunch, the option to pay the amount by instalments has been provided,” the Minister noted. Both the Assembly and the Council passed the Bill.
