Maharashtra's amnesty scheme aims to recover ₹3,000 crore

The Maharashtra government is optimistic about recovering ₹2,500 crore to ₹3,000 crore from an amnesty scheme for disputed taxes. This scheme was announced in the recent state budget and aims to address long-standing tax disputes. The total pending tax revenue in Maharashtra is significant, with ₹94,527 crore from disputed cases and ₹48,534 crore from non-disputed cases. The amnesty scheme applies only to disputed cases. Companies will be able to pay between 30% and 50% of the outstanding tax amount to settle their disputes. Most of the disputed taxes arise from issues with public sector undertakings (PSUs), such as oil companies and defense manufacturers. Many disputes have been ongoing since before the introduction of the Goods and Services Tax (GST) in 2017. The government reports that disputes amounting to ₹25,000 crore may be resolved through this scheme. The amnesty scheme waives penalties and interest. Companies that owe taxes from April 2005 to June 2017 can pay 50% of their tax, while those with older cases must pay 30%. This is expected to help recover around ₹3,000 crore. Maharashtra’s finance minister, Ajit Pawar, noted that the scheme will be available until December 31, 2025. Following the approval of the bill in the state assembly, the scheme will be implemented soon after a formal notification is issued. The government hopes this initiative will clear up old litigation and recover significant tax revenue.