J&K Govt notifies ‘Kar Samadhan-2024’ scheme

Jammu, Jan 15: J&K government Monday notified “Kar Samadhan-2024” scheme for settlement of tax arrears pertaining to pre-GST regime i.e., J&K General Sales Tax Act, 1962, J&K Value Added Tax Act, 2005 and Central Sales Tax Act 1956.

This scheme will remain open for receipt of applications from the date of its issuance till June 30, 2024.

The scheme has been notified in compliance with the decision of the LG-led Administrative Council made on December 26, 2023, to approve the proposal of the Finance department to grant amnesty to the tax-payers in the form of waiver of interest and penalty, besides recovery of the blocked revenue to the government.

In this connection, Principal Secretary Finance Department Santosh D Vaidya accorded sanction to the waiver of 100 percent of penalty and interest payable by dealer under the J&K General Sales Tax Act,1962 and Central Sales Tax Act 1956 relating to assessment or reassessment made, including yet to be assessed cases till accounting year 2017-18 (up to July 7, 2017 in respect of dealers other than liquor dealers).

For the dealers dealing in liquor, the date of coverage will be August 31, 2017.

Amnesty also encompassed waiver of 100 percent of penalty and interest payable by dealer under the J&K Value Added Tax Act,2005 and Central Sales Tax Act, 1956, relating to assessment or reassessment made including yet to be assessed cases till accounting year 2017-18 (up to July 7, 2017).

The waiver of interest and penalty in these cases, however, will be subject to the payment of 100 percent of principal Tax in the manner and within the prescribed time as specified in the scheme.

The amnesty also covered the settlement of demands in respect of Large, Medium and Small Scale Industrial units under the provisions of The Jammu & Kashmir Value Added Tax Act, 2005 (now repealed) for the accounting years up to 2017-18 (up to July 7, 2017), J&K General Sales Tax Act,1962 up to 2017-18 (up to July 7, 2017 and August 31, 2017 in case of industrial units dealing in liquor) and Central Sales Tax Act, 1956 in respect of assessed and reassessed demands including yet to be assessed cases with certain conditions specified in the scheme.

Appending a detailed timeline for payment of Principal Tax and filing of application, it has been specified in the scheme that notwithstanding the given schedule of payments, any dealer desirous of availing the benefits of this scheme, will be at liberty to deposit the principal tax due under the relevant acts in one go at any instant during the currency of the scheme.

CONDITION FOR WAIVER OF PENALTY, INTEREST

Mentioning a detailed account of conditions for waiver of penalty and interest, as per the Scheme, any dealer registered under J&K GST Act, 1962, Jammu and Kashmir Value Added Tax Act,2005 & Central Sales Tax Act, 1956, as the case may be, who makes full payment of Principal tax (assessed, re-assessed or yet to be assessed), as per payment schedule, will be granted waiver of 100 percent of arrears of penalty, excluding penalty levied u/s 10 A of the CST Act, 1956, and interest payable (assessed, re-assessed or yet to be assessed).

The benefit of the scheme will also be extended to industrial units registered under Jammu and Kashmir General Sales Tax Act, 1962, Jammu and Kashmir Value Added Tax Act,2005 and Central Sales Tax Act, 1956. This will also be subject to conditions specified in the scheme.

DEFAULT CONDONATION

Default in payment of one instalment will be condoned on payment of the default instalment along with an additional amount of 0.5 percent of default instalment for every day of default.

The default instalment along with additional amount due as per earlier clause will be paid before the due date of next instalment.

Default in payment of any further instalment within the prescribed timeline will entail outright disqualification from the scheme without any intimation.

Condonation of default will be allowed only once during the currency of this scheme.

SUO-MOTO WAIVER OF INTEREST, PENALTY

As per the Scheme, where the dealer has no arrears of tax but has arrears of penalty and interest only, relating to the assessments or re-assessments already completed and to be completed by or before June 30, 2024, as the case may be, such arrears of penalty and interest will be eligible for a waiver.

The Jurisdictional Officer may take cognizance of such cases either on the application of the dealer or suo-moto basis.

CASES NOT ELIGIBLE FOR AMNESTY SCHEME

The dealer will not be eligible to avail the benefits of this Scheme in relation to an order giving rise to arrears of tax, penalty and interest where the government has filed an appeal before the Jammu & Kashmir Appellate Tribunal; or it has filed an appeal or revision or any kind of application before the High Court or the Supreme Court; or  any competent authority has initiated suo-moto revision proceedings as up to and on the date of this government order; or if any rectification is made after June 30, 2024.

REDRESSAL OF GRIEVANCES

The Scheme also provides a mechanism for redressal of grievances. Any dealer, feeling aggrieved by rejection of the amnesty application, will have an opportunity to present his case before the Additional Commissioner, State Taxes (Administration & Enforcement) of the concerned division within 15 days from the date of receipt of communication regarding rejection. The Additional Commissioner, State Taxes (Administration & Enforcement) concerned will examine the ease and pass an appropriate order, The order passed by the Additional Commissioner, State Taxes (Administration & Enforcement) will be final and binding on the applicant dealer.