Karnataka Karasamadhana Scheme 2024 – How to Apply, Notification, Last Date

Karnataka Karasamadhana Scheme – The Karnataka Karasamadhana Scheme was launched by the Karnataka government to speed up the collection of pre-GST arrears without using litigation. The Karasamadhana Scheme, 2023 was announced by the state government in Order No. FD 07 CSL 2023, Bengaluru, dated July 18, 2023. To those who make full payment of tax arrears on or before December 31, 2023, the Scheme grants forgiveness of 100% of the arrears penalty and interest. Read below to check the detailed information related to Karnataka Karasamadhana Scheme.


Karnataka Karasamadhana Scheme 2024

The Karasamadhana Scheme, 2023 was established by the Karnataka government in Order No. FD 07 CSL 2023, Bengaluru, dated July 18, 2023. Its purpose is to swiftly recover back taxes owed before the introduction of the GST and resolve tax issues without the need for court action. For people who fully pay their tax arrears on or by December 31, 2023, the Scheme grants a 100% forgiveness of the penalty and interest that would otherwise be due. Cases having assessments, reassessments, rectification, revision, or appeal orders already finished and due to be finished on or before October 31, 2023, but no arrears of tax but with arrears of penalty and interest are eligible for waiver.

If information is received from the Assessing authority, Recovery Officer, or Prescribed Authority, the remaining tax amount must be paid within fifteen days of the date of receipt of information or on or before January 15, 2024, whichever is earlier, in order to take advantage of the Scheme’s benefits. The applicant loses their ability to use the benefits of the Scheme if any portion of the payment is still due in arrears on the designated date. The Scheme encourages taxpayers to pay their debts and avoid drawn-out litigation by aiming to efficiently resolve tax disputes and rapidly collect arrears. The Karnataka Government also offers applications for dealers who want to choose the Scheme, making it simple for them to apply for the benefits.

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Karnataka Karasamadhana Scheme Details in Highlights

Name Karnataka Karasamadhana Scheme
Launched by Government of Karnataka
State Karnataka
Official Website vat.kar.nic.in

Karnataka Karasamadhana Scheme Objective

Nowadays, you may either order anything while sitting at home or perform every task online. With the aid of the Internet, we are provided with all these amenities. However, despite the fact that these amenities are advantageous, some people also misuse them. Since Covid arrived in India, there has been a rise in internet trading. In this regard, the government is also falling behind. Additionally, the government has begun conducting the majority of the nation’s economic activities online. Despite the government providing several services, many people and large corporations still fail to pay their taxes and interest obligations on time. India’s economy suffers as a result. The Karnataka government has started a program to address the issue. This plan aims to resolve pre-GST legacy tax disputes and make it easier to quickly collect back taxes without resorting to litigation.

Features of Karnataka Karasamadhana Scheme

Some of the key features of the Karnataka Karasamadhana Scheme are as follows:

  • For assessments, reassessments, rectifications, revisions, and appeal orders that have already been performed or will be completed on or before October 31, 2023 under the KST regime, the KST Act and CST Act’s plan provides a 100% waiver of the arrears of penalty and interest.
  • The scheme grants a 100% forgiveness of penalty and interest arrears for KVAT Act and CST Act assessments, reassessments, rectifications, revisions, and appeal orders that have been resolved or will be resolved by October 31, 2023, with the exception of certain circumstances.
  • For revision orders that have already been completed or started prior to the date of the government order and are required to be finished by October 31, 2023 under all the Acts mentioned in the preamble, the scheme provides a 100% waiver of arrears of interest and penalty (except in certain cases).
  • The KVAT Act’s Sections 72 (concerning returns and assessments) and 74(4) (concerning failure to submit the audited statement of accounts in FORM VAT 240), respectively, each carry particular penalties that are subject to remission under the system, provided that the confessed tax due is fully paid.

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Benefits of Karnataka Karasamadhana Scheme

Some of the key benefits of the Karnataka Karasamadhana Scheme are as follows:

  • The application deadlines for the program have been further extended by the government.
  • People whose applications were left will have another opportunity to submit them.
  • The state government will give all property dealers 100% of their money.

Conditions to Participate in the Program

Certain requirements must be satisfied in order to qualify for the Karnataka Karasamadhana Scheme, 2023:

  • Any dealer, person, or proprietor must pay all back taxes on time on or before December 31, 2023 in order to receive a full waiver of back penalties and interest.
  • A dealer may be qualified for a remission of tax arrears if they only have penalty and interest arrears related to assessments, reassessments, rectifications, revisions, and appeal orders that have been completed or will be completed by October 31, 2023.
  • Before taking advantage of the waiver plan, a dealer must withdraw any appeals or applications they have already filed with any appellate authority or court in response to an order or proceedings involving arrears of tax, penalty, or interest.
  • After submitting an application for this program or using its benefits, dealers are not permitted to file additional appeals or applications before any Appellate Authority or Court.
  • The program is not applicable in situations where the State has filed appeals before the Karnataka Appellate Tribunal, the Central Sales Tax Appellate Authority, the High Court, or the Supreme Court, or in situations where the competent authorities have started a revision process prior to October 31, 2023, or in situations where any correction is made after this date.

Special Rules of the Program

The Karnataka Karasamadhana Scheme, 2023 incorporates the following provisions:

  • Unregistered Dealers: If specific requirements are completed, assessments, reassessments, rectifications, or other processes involving unregistered dealers are eligible for the programme. If there is no RC Number, Tax Payer’s Identification Number (TIN), or Enrolment Number, the number “2900” must be used in the relevant Annexures.
  • Cases that have been remanded: The advantages of the programme are available for assessments, reassessments, rectifications, or other proceedings that have been passed as a result of a case being remanded by the First Appellate Authority, Karnataka Appellate Tribunal, Revisional Authority, High Court, or Supreme Court.

Eligibility Criteria

The applicants applying for Karnataka Karasamadhana Scheme must fulfill the following eligibility criteria:

  • Any personality type shall not be regarded as eligible for the plan under section 10 A of the GST.
  • You must print off the payment condition after you’ve completed it so you have proof.
  • The applicant’s payment status must be required.
  • The printed copy must be delivered to the tax department.

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Required Documents

Some of the important documents required for Karnataka Karasamadhana Scheme are as follows:

  • Applicant’s Aadhar Card
  • Applicant’s PAN Card
  • Business Card
  • Residential Certificate
  • Mobile Number
  • Email ID

Steps to Apply For Karnataka Karasamadhana Scheme

The user needs to follow the below-given steps to apply for Karnataka Karasamadhana Scheme

  • Application Submission: For each assessment year, dealers, individuals, or proprietors who choose to participate in this program must electronically submit a separate application using the format required by the applicable Acts. The deadline for applications is December 31, 2023.
  • Review and Discrepancies: The relevant Assessing Authority, Recovery Officer, or Prescribed Authority will review the applications and check the amount of tax, penalty, and interest owed back to the filing date. Within 15 days of the application submission date, the applicant will be informed of any discrepancies that were discovered.
  • Payment: If errors are found, the applicant may choose to pay the remaining debt within 15 days of receiving the information, on or before January 15th, 2024, or both, whichever comes first.
  • Withdrawal of Appeals/Applications: When requesting the waiver of penalty and interest arrears, applicants must also provide a declaration in favor of the withdrawal of any pending appeals or applications.
  • Order of Waiver: The Assessing Authority, Recovery Officer, or Prescribed Authority will issue an order waiving the remaining amount of arrears of penalty and interest payable by the applicant under the applicable Act for each assessment year or order once they are satisfied that the applicant is eligible for the scheme’s benefits.