VIJAYAWADA: The Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has written to the State government, urging the introduction of a settlement scheme for indirect tax disputes.
In a representation to Finance Minister Payyavula Keshav, the Chambers cited similar successful initiatives implemented by other States and emphasised the need to address the significant backlog of unresolved disputes under the previous indirect tax laws.
Stating that the Goods and Services Tax (GST) regime has simplified the taxation landscape in India, the association pointed out that there still remains a considerable volume of appeals and disputes under the previous indirect tax laws. “This backlog has led to two main challenges: for taxpayers, it results in blocked working capital and mounting litigation costs, while for the government, it means thousands of crores in revenue remains tied up, limiting liquidity for developmental and welfare activities,” the AP Chambers explained.
Further, it highlighted the success of settlement schemes in other States, which have successfully reduced litigation and unlocked much-needed revenue. These schemes have allowed businesses to resolve legacy tax disputes while simultaneously easing the administrative burden on tax authorities, enabling them to focus on stabilising the GST framework.
AP Chambers said that Maharashtra introduced a two-phase settlement scheme that offered significant waivers on taxes, interest, and penalties, while Kerala and Karnataka implemented similar schemes with 100 per cent waivers on interest and penalties upon full payment of tax arrears. West Bengal also introduced a flexible settlement scheme, offering taxpayers the opportunity to clear outstanding tax liabilities in instalments.
“AP Chambers strongly believes that Andhra Pradesh can benefit greatly from a similar initiative, which would not only alleviate the burden on taxpayers, but also streamline the State’s tax administration,” said AP Chambers President Potluri Bhaskara Rao and Secretary B Raja Sekhar in a release on Thursday.