Delhi Govt Plans One-Time Tax Amnesty Scheme to Clear Pre-GST Disputes

1. What Is the News About?

The Delhi government is planning to launch a one-time tax amnesty scheme.

This scheme is meant to help traders and businesses settle pending tax disputes from before GST came into effect (i.e., before July 1, 2017).

2. What Is a Tax Amnesty Scheme?

Under this scheme, traders can clear their old tax dues.

They will only have to pay the actual tax amount (principal).

They won’t need to pay any interest, penalty, or late fees.

It’s a chance to close old cases peacefully.

3. Why Is This Scheme Needed?

Delhi has over 3.5 lakh (350,000) traders with old tax disputes.

The total amount in dispute is ₹15,000 crore, but the actual tax amount is only ₹5,500–₹6,000 crore.

Most of these cases are stuck in legal processes or courts and have not been resolved for many years.

The government wants to clear this backlog and recover revenue quickly.

4. Who Will Benefit?

Traders and businesses: They get a chance to settle old dues without paying extra charges.

Government: It gets revenue faster and clears old pending cases.

Courts and departments: It reduces the burden of handling years-old tax disputes.

5. How Much Tax Revenue Is Involved?

The total disputed amount: ₹15,000 crore

The actual tax expected to be paid under the scheme: ₹5,500–₹6,000 crore

In 2025–26, Delhi's total tax revenue target (GST + VAT) is around ₹49,000 crore out of a total budget of ₹1 lakh crore.

This scheme could help meet that target.

6. What Is the Current Status?

The scheme is currently being reviewed by the Finance Department.

It will go through legal and planning checks.

After approval, the Delhi Cabinet will launch it officially.