Goa Government to Waive-off Rs 49.5 Crore Pre-GST Arrears for 16,400 Traders Under OTS Scheme

To reduce the burden on traders and promote smoother compliance with the Goods and Services Tax (GST) regime, Chief Minister Pramod Sawant announced today that the state government has waived pre-GST arrears of Rs.49.5 crore for approximately 16,400 traders under the one-time settlement (OTS) scheme.

The Chief Minister emphasized that the goal of the OTS scheme, which will be started in October 2023, is to make the transition to the GST regime as smooth as possible while minimizing arrears and legal challenges. The initiative allowed traders to clear their outstanding debts and get significant exemptions.

As highlighted by the Chief Minister, the deadline for clearing outstanding dues in order to receive benefits under the scheme is March 7, 2024, with no further extensions given.

Traders who benefited from the waiver can obtain their certificate on the official website. The OTS was adopted under the Goa (Recovery of Arrears of Tax, Interest, Penalty, and Other Dues via Settlement) Act of 2023 (Goa Act 34 of 2023), popularly known as the GRATIPOS Act.

The Act encouraged dealers to apply for settling dues connected to assessments up to June 30, 2017, under different tax legislation, such as the Central Sales Tax Act, Goa Sales Tax Act, Goa Tax on Luxuries Act, Goa Entertainment Tax Act, and Goa Tax On Entry of Goods Act.

The OTS plan provides various rewards depending on the nature of the case. In undisputed situations, a 20% tax rebate and a 100% reimbursement on interest, penalty, and other dues are paid. In disputed circumstances, traders can receive a 50% tax rebate as well as a full waiver of interest, penalties, and other fees.

The Chief Minister encouraged traders to take advantage of this opportunity before the deadline, and he emphasized the government‘s commitment to assisting enterprises in complying with the tax regime while avoiding financial costs. The measure is likely to improve the business environment in Goa, fostering growth and tax compliance.