The Government of Karnataka on July 18, 2023, issued the Karasamadhana Scheme, 2023.
The scheme has been introduced in order to expeditiously resolve pre-GST legacy tax disputes and to collect arrears promptly without litigation.
The following are the features of the scheme:
• It grants a waiver of 100% of arrears of penalty and interest payable by a dealer under the Karnataka Sales Tax Act, and Central Sales Tax Act, 1956, relating to the assessments/re-assessments/ rectification/ revision/ appeal orders already completed and as the case may be, to be completed on or before October 31, 2023, under the KST regime.
• It grants a waiver of 100% of arrears of penalty excluding those specifically mentioned and interest payable by a dealer under the Karnataka Value Added Tax Act, 2003 and CST Act relating to the assessments/re-assessments/ rectification/revision/appeal orders already completed and to be completed on or before October 31, 2023.
• It grants a waiver of
o penalty levied under Section 72 relating to returns and assessments under the KVAT Act and consequential interest subject to the condition that the amount of tax as admitted in the return or assessed is paid in full.
o the penalty levied under Section 74(4) for failure to submit a copy of the audited statement of accounts in FORM VAT 240 under the KVAT Act and consequential interest subject to the condition that admitted tax liability, if any, as per FORM VAT 240 is paid in full.
• It grants a waiver of 100% of arrears of penalty and interest payable by a dealer or person or proprietor as the case may be relating to the assessments/re-assessments/rectification/ revision/ appeal orders already concluded and to be concluded up to October 31, 2023, under following Acts also, namely. -
o Karnataka Tax on Entry of Goods Act, 1979, (hereinafter referred to as KTEG Act);
o Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, (hereinafter referred to as KTPTC & E Act);
o Karnataka Tax on Luxuries Act, 1979 (hereinafter referred to as KTL Act);
o Karnataka Agricultural Income Tax Act, 1957 (hereinafter referred to as KAIT Act); and
o Karnataka Entertainments Tax Act, 1958, (hereinafter referred to as KET Act).
• It grants 100% waiver of arrears of interest and penalty excluding those specifically mentioned, payable by a dealer or person or proprietor as the case may be relating to
o revision orders already concluded; or
o revision proceedings initiated prior to the date of issuance of this Government Order and revision orders to be completed on or before 31-10-2023 in respect of all the Acts mentioned in the Preamble.
[Notification No. 323]
