In a significant move aimed at providing relief to taxpayers and recovering blocked revenue, the Administrative Council (AC), under the chairmanship of Lieutenant Governor Manoj Sinha, approved a Finance Department proposal for granting amnesty for the settlement of tax arrears from the pre-GST regime.
The meeting, attended by key officials including Advisor Rajeev Rai Bhatnagar and Chief Secretary Atal Dulloo, sanctioned the amnesty scheme, which comes as a respite for taxpayers by waiving interest and penalties. The decision is expected to facilitate the government in recouping overdue revenue.
Previously, several dealers were unable to avail the benefits of the erstwhile amnesty scheme due to various reasons, including the impact of the Covid-19 pandemic. In response to numerous representations from the trade and industry sector, the government decided to extend a one-time opportunity to dealers for settling outstanding arrears under pre-GST tax legislations.
The Amnesty Scheme outlines the following relief measures: 100% Waiver: Penalties and interest under J&K General Sales Tax Act, 1962, and Central Sales Tax Act, 1956, for assessments/reassessments up to 2017-18. 100% Waiver: Penalties and interest under J&K Value Added Tax Act, 2005, and Central Sales Tax Act, 1956, for assessments up to 2017-18. Conditions Apply: Waiver of interest and penalty, as mentioned in points 1 and 2, is subject to 100% payment of principal tax within the prescribed time, as per the scheme to be notified by the government.
Settlement of Demands: Industrial units covered under the repealed J&K Value Added Tax Act, 2005, and J&K General Sales Tax Act, 1962, up to 2017-18, with certain conditions to be notified in the scheme. This government initiative is anticipated to reduce tax dispute cases, conclude pre-GST cases, and provide a structured resolution for outstanding arrears. The application period for this amnesty is limited to six months from the date of the issuance of the order.
