The Himachal Pradesh government has prepared and approved the State (Legacy Cases Resolution) Scheme under the Department of This was disclosed by a spokesman of the state government here today.
He said the scheme would address settlement of legacy cases under General Sales Tax, VAT, CST and other taxation laws subsumed under GST.
The scheme would be applicable for both settlement of pending arrears as well as any arrear that might accrue on account of disposal of pending assessments under taxation laws subsumed under GST.
The scheme is expected to expedite the disposal of the legacy issues resulting into generation of revenue stuck due to non-disposal of assessment cases or arrears under litigation.
States like Gujarat, Kerala, Karnataka, Maharashtra, Madhya Pradesh, Haryana and Rajasthan have introduced settlement schemes to settle legacy issues.
These states have brought the settlement schemes under certain existing legislations. The Centre has also brought a scheme called Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 to settle legacy of Central Excise and Service Tax.
The schemes introduced by states have provided certain immunities and incentives to the applicants. Maharashtra has provided 50 percent waiver of tax amount, 90 percent waiver of penalty and 95 percent waiver of interest.
Karnataka has granted waiver of 100 percent of arrears of penalty and interest. The Centre Central has provided waiver of tax dues ranging from 40 percent to 70 percent alongwith complete waiver of penalty and interest and waiver from prosecution.
There was pendency of arrears of around Rs 3,500 crore and assessment cases numbering 3 lakh were pending for assessment. He said that it is estimated that the scheme would release revenue of Rs. 620 to 670 crore assuming that all current defaulters apply under the scheme.
The spokesman said it will also help release considerable manpower engaged in legacy issues resulting into availability of more manpower for improving compliances under GST.
Theere is even provision of settlement fee. A declarant may settle the pending arrears or a pending assessment by way of payment of settlement fee, the official added.
The declarant is required to pay settlement fee for settling a legacy issue at the rate of 10 percent of tax paid where returns or tax is late; 110 percent of the tax due where no return has been filed and where the Statutory form (C,F,H etc.) are involved and have not been produced.
The fee would be 1 percent of the value of such form or 100 percent of the tax required to be paid against such forms whichever is higher. He said that the last date to file declaration under the Settlement Scheme would be 30th April, 2020.