- Waiver of 100% of arrears of penalty and interest payable by a dealer under the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the KST Act) and Central Sales Tax Act, 1956 (hereinafter referred to as the CST Act) relating to the assessments / re-assessments/ rectification/ revision/ appeal orders already completed and as the case may be, to be completed on or before 31-10-2023 under the KST regime.
- 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 (hereinafter referred to as the KVAT Act) and CST Act relating to the assessments / re-assessments / rectification/ revision / appeal orders already completed and to be completed on or before 31-10-2023.
- Waiver of –
- 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.
- penalty levied under Section 74(4) for failure to submit 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.
- 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 upto 31-10-2023 under following Acts also, namely.-
- Karnataka Tax on Entry of Goods Act, 1979, (hereinafter referred to as KTEG Act);
- Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, (hereinafter referred to as KTPTC & E Act);
- Karnataka Tax on Luxuries Act, 1979 (hereinafter referred to as KTL Act);
- Karnataka Agricultural Income Tax Act, 1957( hereinafter referred to as KAIT Act); and
- Karnataka Entertainments Tax Act, 1958, (hereinafter referred to as KET Act).
- 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-
- revision orders already concluded; or
- 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.
Conditions:
- Any dealer or person or proprietor, as the case may be, who makes full payment of arrears of tax on or before 31-12-2023 shall be granted waiver of 100% of arrears of penalty and interest payable. However, any penalty levied by the Registering Authority under section 10-A of the CST Act shall not be eligible for benefit of waiver under this Scheme and also the penalties levied under section 73, section 75, section 76, section 77 and section 79 of the KVAT Act, 2003.
- Where the dealer has no arrears of tax but has arrears of penalty and interest only, relating to the assessments / re-assessments/ rectification/ revision/ appeal orders already completed and to be completed, as the case may be, on or before 31-10-2023, such arrears of penalty and interest shall be eligible for waiver.
- Where a dealer has filed an appeal or any application against the order or proceedings relating to arrears of tax and/or arrears of penalty and interest before any Appellate Authority or Court and disposal of such application is still pending, the dealer shall withdraw such appeal or other application before availing the benefit of waiver of arrears of penalty and interest under this Scheme.
The dealer shall file a declaration in support of withdrawal of appeal or other application in Annexure-II along with application for waiver of arrears of penalty and interest in Annexure-I. Such application and declaration shall be filed for each year separately.
- After the appeal or other application is withdrawn, the amount of arrears of penalty and interest shall be considered for waiver under the Scheme. Any amount of penalty and interest paid at the time of filing an appeal or other application shall be eligible for adjustment towards arrears of tax outstanding for the assessment year for which the benefit of waiver is claimed. However, the dealer shall not be eligible for refund of any amount that may become excess as a result of such adjustment under this Scheme.
- In respect of cases where any Appeal or other application is not filed, the dealer shall not be eligible for refund of any penalty or interest already paid, either in full or partially, under this Scheme.
- The dealer shall not file an appeal or other application before any Appellate Authority or Court or shall not seek rectification of orders/proceedings, after filing application for availing the benefits of this Scheme or after availing the benefits of this Scheme, for whatever reasons.
- The dealer shall 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 State has filed an appeal before the Karnataka Appellate Tribunal or the Central Sales Tax Appellate Authority; or
- the State 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 suomotu revision proceedings as on the date of this Government Order and pending for disposal as on 31-10-2023; or
- any rectification is made after 31-10-2023.