New rates have come into effect for the Amnesty scheme 2024, meant to dispose of decades-old tax arrears under pre-GST tax regimes, from September 30, the State Goods and Services Tax (SGST) Department has said. The following rates will be binding on those who apply under the scheme between September 30 and October 31. Tax arrears up to ₹50,000 will be written off entirely.
For settling arrears above ₹50,000 and up to ₹10 lakh, defaulters must pay 32% of the tax amount. For arrears between ₹10 lakh and ₹1 crore, there are two schemes; defaulters should pay 42% of the tax amount for cases under appeal and 52% for others. For tax arrears above ₹1 crore, 72% of the amount for cases under appeal and 82% for the rest.
Launched on August 1, the tax arrears resolution scheme is designed to benefit the trade sector. The deadline for receiving the full benefits under it had ended on September 29. The State GST Department noted that a 2% increase from the above rates will be binding on applications filed between November 1 and November 30, and those defaulters who pay up within 120 and 180 days of receiving the short notice.
A further 2% increase will be binding on applications filed between December 1 and December 31. December 31 is the last date for filing applications for the settlement of tax arrears under the scheme. Arrears under the pre-GST Kerala Value Added Tax Act, Kerala Agricultural Income Tax Act, Kerala General Sales Tax Act, Kerala Tax on Luxuries Act, and Ke.
