“Bihar’s Tax Relief: ‘One-Time Settlement’ for Traders”

Bihar Introduces ‘One-Time Settlement’ Initiative for Traders

The NDA government in Bihar unveiled a ‘one-time settlement’ initiative on Thursday aimed at providing relief to traders with tax liabilities dating back to the pre-GST era.

Introduction of Bihar Tax Disputes Settlement Bill, 2024

Deputy Chief Minister Samrat Chaudhary, also the Finance Minister, introduced the Bihar Tax Disputes Settlement Bill, 2024 in the state assembly. The bill was passed through a voice vote.

Provisions of the Settlement Scheme

Under the proposed scheme, traders can settle their pre-GST tax liabilities by paying 10 per cent of the penalty, with the remaining 90 per cent waived. Additionally, they must pay 35 per cent of the disputed tax amount to receive a waiver of the remaining 65 per cent.

Conditions for Availing the Scheme

Traders are required to pay both 10 per cent of the interest and penalty, as well as 35 per cent of the disputed tax amount to avail of this facility.

Exemption for Petrol Pump Owners

Chaudhary announced that the government has accepted the demand of petrol pump owners to be exempted from filing VAT returns.

Legislative Amendments and Budget Session

The announcements were made on the penultimate day of the budget session, which commenced two weeks ago following Chief Minister Nitish Kumar’s victory in a trust vote. The assembly also passed amendments to various acts related to education and minority commissions through voice votes.