Maharashtra's GST Amnesty Scheme: A Financial Lifeline

Maharashtra's Deputy Chief Minister Ajit Pawar announced a tax amnesty scheme aiming to recover 20% of outstanding GST dues. Expected to process 1.14 lakh applications, the scheme offers waivers on penalties and interest through March 2025, targeting Rs 54,000 crore in disputed taxes and accumulated charges.

The Maharashtra government has launched an ambitious tax amnesty scheme designed to recover 20% of outstanding state GST demands, equivalent to Rs 6,000 crore. Deputy Chief Minister Ajit Pawar detailed these projections, emphasizing that the initiative is expected to draw in approximately 1.14 lakh applications from businesses for waivers on penalties and interest accumulated between 2017-18 and 2019-20.

Introduced on November 1, the amnesty scheme aims to address a substantial Rs 54,000 crore in outstanding dues. This amount comprises Rs 27,000 crore in disputed taxes, with the remainder accruing from penalties and interest. The scheme will remain active until March 31, 2025, providing a significant opportunity for financial relief to the business community.

The state government has made efforts to engage businesses directly by sending out 80,000 letters, inviting their participation. Businesses and industries that take advantage of this scheme stand to benefit greatly, with potential savings of Rs 6,000 crore through the waiver of penalties and interest on their outstanding tax obligations.

(With inputs from agencies.)