The Government of West Bengal has notified the West Bengal Sales Tax (Settlement of Dispute) Act, 2025 to provide long-pending relief to taxpayers by enabling the settlement of disputed tax cases pending before various authorities. The move amends the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 and its rules, effective July 18, 2025, with the aim of reducing litigation and easing the compliance burden.
Under the scheme, taxpayers can settle arrears of tax, penalty, late fee, or interest arising from proceedings under eight different state and central sales tax legislations, including the West Bengal VAT Act, 2003, Central Sales Tax Act, 1956, and Bengal Finance (Sales Tax) Act, 1941. Disputes pending as on March 31, 2025, for periods ending on or before June 30, 2017, are eligible.
The payable amount under the scheme is significantly concessional-only 15% of the arrear tax in most cases, with no payment required for related interest, late fees, or certain penalties. For entry tax arrears, 75% of the disputed amount must be paid, while interest and penalties are waived.
Applications must be filed in Form 1 before the designated authority by September 30, 2025. Payments are to be made online via the Government Receipt Portal System (GRIPS), and each case requires a separate application.
Once the application and payment are accepted, a provisional settlement certificate will be issued within 15 working days. If no discrepancies are found within three months, the certificate will become final, resolving the dispute.
The initiative is expected to benefit thousands of businesses, expedite revenue collection, and free up administrative resources by closing long-pending tax disputes.
Official copy of the notification has been attached
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