State government implemented the One-Time Settlement (OTS 2023) Scheme under the Value Added Tax (VAT) Act for the recovery of outstanding dues

• OTS scheme will benefit over 70 thousand business persons with outstanding dues; applicants can fill out the form until January 31, 2024

TFP Bureau, Raipur, Sep 25, 2023: The Goods and Services Tax (GST) department has introduced a one-time settlement scheme under the Value Added Tax (VAT) and Commercial Tax Act for the recovery of old outstanding amounts of VAT, Central Entry Tax, Turnover Tax, and Luxury Tax. More than 70,000 businesspersons with pending dues can benefit from this scheme in the state. Under the guidance of the Deputy Chief Minister, Mr. T.S. Singh Deo, the department officially notified this scheme on September 15. Under the one-time settlement scheme, pending taxes, interest, and penalties will be collected. For this, business persons will need to apply in the prescribed format at the offices of the Commercial Tax Commissionerate. Applications can be submitted under this OTS scheme until January 31, 2024.

A special feature of this OTS scheme is that it has been extended to cases pending as of January 31, 2024, including cases related to tax determination, revision, first or second appeal, and appeals before the government, high court, or supreme court. Business persons who participated in the Saral Samadhan Yojana for the recovery of outstanding dues in 2010 can also be included under this settlement act.

Under the provisions of the OTS scheme, in cases where the outstanding amount in a pending case exceeds Rs. 50 lakhs in a year, 40% of the tax amount will be waived, along with 90% of the interest amount and 100% of the penalty amount. In cases where the outstanding amount is less than Rs. 50 lakhs, 60% of the outstanding amount, 90% of the interest amount, and 100% of the penalty amount will be waived.

For the convenience of business persons, the OTS scheme, rules, and application format have been uploaded on the website https://comtax.cg.nic.in by the Commercial Tax Department. Under the OTS scheme, online applications can also be submitted. Those applying online will need to submit a hard copy to the concerned officer at the respective Commercial Tax office. Business persons included under the OTS can apply for this free of charge.