State to introduce new tax dispute settlement scheme

Kolkata: In a bid to settle all tax disputes related to sales tax, Value-Added Tax (VAT) and others, the state government is introducing another dispute settlement scheme where pending taxes till February 10, 2023 can be paid easily by May 31, 2023, thus generating more revenue for the state.

Presenting the 2023-24 West Bengal Budget, Chandrima Bhattacharya, Minister of State, Finance (Independent charge) said all those who are entangled in disputes under the West Bengal Sales Tax Act, 1994, West Bengal Value Added Tax (VAT) Act, 2003 and Central Sales Tax (CST), 1956 can now heave a sigh of relief as the state government is introducing an easy and transparent dispute settlement scheme which seeks to provide relief.

She added that it was in 2020 last that the state government had introduced such a dispute settlement scheme which helped in settling around 28,697 cases related to tax disputes. “However, more than 25,000 cases are still pending in different tribunals and courts,” she pointed out.

The minister added that under the new dispute settlement system, one will be able to pay their area tax, interest, penalty or late fees that were pending till February 10, 2023. “Now, they can deposit these by May 31, 2023 or even before to settle the claims. This will help in increasing the revenue of the state government,” she highlighted.

The scheme was initially introduced five-six years ago to benefit businesses settle all pre-GST disputes till June 2017 and those that remain unsettled as on October 2018. In 2020, the then Finance minister Amit Mitra again rolled out such a scheme for VAT, CST and entry tax in the Budget for the financial year 2020-21. It was introduced to help taxpayers settle VAT, and CST cases by depositing 25% of the disputed tax by March 31, 2020.