Monday, January 15, 2024

Unveiling Haryana's One Time Settlement-2023 Scheme


In a significant stride towards economic ease, Haryana's Chief Minister, Sh. Manohar Lal, has introduced the One Time Settlement-2023 (OTS) Scheme, offering a lifeline to traders and businesses grappling with unresolved tax payments predating the GST era. Operational from January 1, 2024, to March 30, 2024, this initiative is not just a relief measure but a comprehensive strategy reshaping the state's taxation landscape.

Tax Relief Measures:

The OTS-2023 Scheme categorizes taxes into three distinct groups, each tailored to address different tax scenarios:

  1. Undisputed Taxes:

    • Description: Refers to taxes on which there is unanimous agreement.
    • Benefit: Taxpayers pay 100% of the amount without penalties or interest.
  2. Disputed Taxes:

    • Description: Deals with taxes where there is varying disagreement.
    • Benefit: Offers flexibility with varying percentages based on the outstanding amount, allowing businesses to settle dues based on their financial capacity.
  3. VAT-Related Acts:

    • Description: Addresses concerns related to seven VAT-related acts.
    • Benefit: Grants relief from penalties and interest in specific cases, showcasing a nuanced understanding of tax intricacies.

    Table: Tax Categorization and Relief Measures

    Tax CategoryDescriptionRelief Measures
    Undisputed TaxesTaxes with unanimous agreement100% payment without penalties or interest
    Disputed TaxesTaxes with varying degrees of disagreementVarying percentages based on outstanding amount
    VAT-Related ActsConcerns related to seven VAT-related actsRelief from penalties and interest in specific cases

GST Training Institute: Empowering Businesses:

Recognizing the evolving tax landscape, the Chief Minister announced the establishment of a GST Training Institute in collaboration with HIPA, Gurugram. This initiative emphasizes the government's commitment to skill development and compliance. By staying informed and up-to-date with tax regulations, businesses can now navigate the complexities of the GST framework more effectively.

Installment Options and Payment Structure:

For a detailed understanding of the payment structure, the article delves into the installment options available under the scheme:

  • Payment Structure for Outstanding Amounts Below Rs 10 lakh:

    • Requirement: Entire sum to be paid before March 30th.
  • Payment Structure for Outstanding Amounts Above Rs 10 lakh:

    1. 1st Installment:
      • Payment: Percentage of settlement amount.
    2. 2nd Installment:
      • Payment: Remaining balance.

Urban Ownership Scheme: Supporting Honest Taxpayers:

Beyond tax relief, the scheme contributes to urban development with the expansion of the Urban Ownership Scheme. This initiative grants ownership rights to shopkeepers, reflecting the government's dedication to supporting honest taxpayers and bolstering state revenue.


In conclusion, Haryana's One Time Settlement-2023 Scheme emerges as a beacon of progressive tax reform. The detailed categorization of taxes, flexibility in payment options, and the establishment of the GST Training Institute collectively signify the government's commitment to addressing the multifaceted needs of the business community. As businesses embrace this opportunity to settle their outstanding dues, Haryana aims not only for significant revenue growth but also to solidify its position as a leader in the evolving tax infrastructure of the country. This scheme goes beyond financial relief, ushering in a new era of pragmatic and comprehensive tax policies