The state cabinet on Wednesday approved a proposal to ensure that all taxation-related disputes before Goods and Services Tax (GST) was introduced are settled. A new legislation will be introduced to ensure people who come ahead to settle disputes will get a waiver of 1-50% in penalty amount.
This is being done to ensure that revenue the government was losing due to litigation is recovered and the backlog of applications as per the old taxation system is disposed of, said an official. Thousands of cases as disputes are pending for many years in the state. The cases are related to taxes such as Central Sales Tax, 1956, Bombay Sales of Motor Spirit Taxation Act, 1959, and Maharashtra Purchase Tax on Sugarcane Act, 1962.