Karnataka Govt Introduces ‘Karasamadhana Scheme, 2023’ for Pre-GST Arrears Settlement, Offering Penalty and Interest Waiver

The Karnataka Government vide Order No. FD 07 CSL 2023, Bengaluru, dated July 18, 2023 introduces the “Karasamadhana Scheme, 2023” to resolve pre-GST legacy tax disputes and expedite the collection of arrears without resorting to litigation.

The Scheme offers a waiver of 100% of arrears of penalty and interest payable to those who make full payment of arrears of tax on or before December 31, 2023.

Cases with no arrears of tax but arrears of penalty and interest related to assessments, re-assessments, rectification, revision, or appeal orders already completed and to be completed on or before October 31, 2023, are eligible for waiver.

To avail the benefits of the Scheme, the balance of the tax amount must be paid within fifteen days from the date of receipt of information or on or before January 15, 2024, whichever is earlier, in cases where information is received from the Assessing authority, Recovery Officer, or Prescribed Authority.

If any partial amount is still outstanding as arrears on the specified date, the applicant becomes ineligible to avail the benefits of the Scheme.

The Scheme aims to resolve tax disputes efficiently and collect arrears promptly, encouraging taxpayers to settle their dues and avoid prolonged litigation.

Along with the Scheme announcement, the Karnataka Government provides applications for dealers who wish to opt for the Scheme, allowing them to easily apply for the benefits.

The Complete Notification can be accessed at: https://gst.kar.nic.in/latestupdates/karasamadhana202319723.pdf

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