Government rolls out settlement scheme to clear VAT, CST dues
June, 02nd 2017
Finally, ahead of rolling out of all new indirect tax regime Goods and Service Tax (GST) in the country, the state government declared settlement scheme for clearing pending dues of VAT and central sales tax. The scheme will be remained open till July 31, 2017. The scheme, aimed at helping taxpayers to clear long pending dues, was introduced through a notification issued on May 29. Under the scheme, a relief is being given to the taxpayer ensuring waiver of penalty by paying onetime tax.
Tax payers willing to settle issues will have to apply in a prescribed format within 60 days of introducing the scheme, by July 31, 2017. Later, on public interest it could be extended for another 30 days.
In the notification further clarified that tax and penalty imposed on VAT and CST in the case of raids and vehicles inspection, cannot get exemption under the scheme. Total 40 per cent of the due amount or 100 per cent tax amount included in total due amount, whichever will be higher, would be acceptable as settlement amount.
The cases worth less than Rs 5 lakh can be applied to assistant commercial tax officer while cases worth less than Rs 15 lakh can be produced before commercial tax officer and Rs 15 lakh or above can be produced before assistant commissioner. Settlement under the scheme has to be made through online payments and for every orders, a businessman has to file separate applications with a summary.