The Tamil Nadu government has introduced the Samadhan scheme 2023 on Tuesday, offering substantial waivers and concessions to pave the way for settling long-pending tax dues amounting to approximately ₹25,000 crore. These dues predominantly arise from the erstwhile Tamil Nadu Value Added Tax and other legacy tax legislations.
The Samadhan scheme 2023, unveiled by Tamil Nadu Chief Minister MK Stalin in the State Assembly, aims to bring an end to lingering tax arrears, disputes, and appeals that have persisted between traders and the State’s commercial tax department.
Samadhan Scheme – Transition to GST
With the implementation of the Goods and Services Tax (GST) on July 1, 2017, several earlier tax legislations were subsumed under GST. However, the arrears, interest, and penalties from the previous regime remained unresolved.
The scheme classifies outstanding tax dues into five comprehensive categories, based on the amount owed: ₹50,000 and below, above ₹50,000 to ₹10 lakh, above ₹10 lakh to ₹1 crore, above ₹1 crore to ₹10 crore, and above ₹10 crore.
Currently, there are a staggering 2,11,607 tax disputes involving 1,42,569 traders, with a total outstanding tax amount of ₹24,895 crore.
Relief for Small Traders
Under the new scheme, small traders will benefit from a complete waiver of tax arrears, interest, and penalties if the total arrears for an assessment year amount to less than ₹50,000. This move is expected to provide substantial relief to the small trading community.
The Tamilnadu Samadhan scheme 2023 introduces a nuanced approach, offering concessions that align with the outstanding dues. This novel approach aims to resolve disputes effectively and provide traders with the opportunity to reclaim their properties, previously attached due to these disputes.
Samadhan Scheme – Commencement and Duration
The Samadhan scheme is set to take effect on October 16, 2023, and will remain in force until February 14, 2024, providing a defined window of opportunity for traders to settle their dues.
Tamil Nadu Chief Minister MK Stalin emphasized that this Samadhan scheme 2023 marks the first-ever waiver program by any Tamil Nadu government aimed at supporting small traders. The complete waiver of dues below ₹50,000 is expected to benefit over 95,000 small traders, providing them with much-needed relief.
Prominent voices, including S Rethinavelu, President of the Agrofood Chamber of Commerce & Industry and Member of the Tamil Nadu Traders Welfare Board, lauded the Samadhan scheme 2023. He noted that the unprecedented complete waiver of dues under ₹50,000 and the waiver of accrued interest on tax arrears until payment are concessions unlike any other government has offered.