The Maharashtra government vide Trade Circular No. 11 T of 2023 dated June 26, 2023 has introduced the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023 (“the Settlement Act, 2023”) with the aim of reducing pending litigations and unlocking outstanding dues under previous tax laws. This act provides a one-time payment option for individuals to settle their arrears and benefit from the scheme. The act outlines three category of arrears eligible for settlement.
The first category includes orders that were issued on or before April 30, 2023, or any statutory orders passed during the operative period of the Settlement Act, which runs from May 1, 2023, to October 31, 2023. The second category includes returns or revised returns that were filed before the enactment of the Settlement Act, 2023 or during its operative period. The third category covers amounts determined and recommended as payable by auditors in audit reports submitted under section 61 of the Value Added Tax Act, irrespective of whether a notice under section 32 or 32A of the Value Added Tax Act has been issued.
The act clarifies that if any order passed during the operative period of the Settlement Act, 2023 results in a modification of the demand for tax, interest, penalty, or late fee, the applicant is eligible to avail the benefits of settlement based on the modified order. However, this provision is applicable only if the modified order is passed by October 31, 2023.
According to the act, individuals who have already availed of the Settlement Scheme, 2022, are not eligible to opt for the benefits under the Settlement Act, 2023. However, if the settlement order under the Settlement Act, 2022, has been passed with or without providing benefits, then the applicant can choose to opt for the Settlement Act, 2023.
The act further lays down the method for determining the requisite amount and the extent of waiver, as well as the duration of time within which individuals can apply and pay the requisite amount. It also outlines the conditions that must be met to avail the benefits under the Settlement Act, 2023. Additionally, the act provides details regarding the forms and procedures to be followed.
The Complete Trade Circular can be accessed at: https://mahagst.gov.in/sites/default/files/trade-circular/FINAL%20TRADE%20CIRCULAR%2011T%202023%20FOR%20%20UPLOAD%2023.06.2023.pdf