Karasamadhana Scheme’,2021 grants waiver of 100% arrears of penalty and interest payable by dealer/person/proprietor as the case may be relating to the assessment or reassessment already concluded and to be concluded on or before July 31,2021 under following Acts, namely.-

• Karnataka Sales Tax Act,1957
• Karnataka Value added Tax Act,2003
• The Central Sales Tax Act,1956
• The Karnataka Tax on Luxuries Act,1979
• The Karnataka Tax on Professions, Trades, Callings and Employment Act,1976
• The Karnataka Agricultural Income Tax Act,1957
• The Karnataka Entertainment Tax Act,1958   and
• The Karnataka Tax on Entry of Goods Act,1979

Grant of waiver of penalty and interest is subject to following conditions:

Any dealer/person/proprietor shall be granted waiver of 100% of arrears of penalty and interest payable if he makes full payment of arrears of tax on or before 31.10.2021.

Any appeal/other application pending before any Appellate authority or Court against the order or proceedings relating to arrears of tax and arrears of penalty and interest shall be withdrawn by dealer.

In respect of cases where any Appeal or other application is not filed, the dealer shall not be eligible for refund of any penalty or interest already paid, either in full or partially, under this Scheme.

The dealer shall not be eligible to avail the benefits of this Scheme in relation to an order giving rise to arrears of tax, penalty and interest where:-

1. State has filed an appeal before Karnataka Appellate Tribunal or the Central Sales Tax Appellate Authority or High Court or The Supreme Court;
2. Any competent authority has initiated suomotu revision proceedings as on the date of this Government Order; or
3. any rectification is made after 31.07.2021 

For more details, refer the below link:https://gst.kar.nic.in/Othertaxlaws/ComprehensiveKarasamadhanaScheme2021.pdf

PDF version is attached: Government of Karnataka has launched “Karasamadhana Scheme, 2021” to clear the tax arrears pertaining to erstwhile Tax Regime (pre-GST)

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This document has been prepared in summary form by Dewan P. N. Chopra & Co. based on the advance ruling as indicated above. For further details, please refer the said Judgement as per link attached above. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Reader should conduct and rely upon their own examination, investigation and analysis and are advised to seek their own professional advice. The information and data contained herein is not a substitute for the recipient’s independent evaluation and analysis. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies on it.