Haryana GST Department: Removal of Difficulties Order, 2024
Issued by: Haryana GST Department
Order Number: 40/GST-2
Date: December 11, 2024
Key Highlights
1. Repeal of Pre-GST Laws
To streamline the transition to GST, the Haryana Tax on Entry of Goods into Local Areas Act, 2008, which replaced the Haryana Local Area Development Tax Act, 2000, has been repealed.
Furthermore, Section 174 of the Haryana GST Act preserves actions and provisions under these repealed laws. As a result, it helps address procedural difficulties and pending issues effectively.
2. Judicial and Legislative Context
Initially, the Punjab and Haryana High Court upheld the constitutional validity of the Haryana Local Area Development Tax Act, 2000. Subsequently, the Supreme Court reviewed this decision and clarified that states could levy entry taxes, provided they are compensatory and comply with Articles 301 and 304(a) of the Constitution.
Thus, this order builds on evolving judicial interpretations and ensures that unresolved matters are transitioned smoothly into the GST framework.
3. Haryana GST (Removal of Difficulties) Order, 2024
The main purpose of this order is to resolve issues related to pending proceedings under the repealed entry tax laws.
Key Provisions:
- It explicitly defines the roles and responsibilities of importers, assessing officers, and appellate authorities.
- Moreover, it provides retroactive continuity for unresolved cases, which is applicable from April 16, 2008.
Importer Registration and Compliance
Registration Requirements
To ensure compliance, importers must register under the Haryana GST framework using the prescribed application process. Additionally, businesses previously registered under frameworks like Haryana VAT are automatically considered registered.
Record Maintenance
Importers must display their registration certificates at their business premises. Furthermore, they should promptly update any changes, such as business closure or ownership transfers, to remain compliant.
Tax Payment, Refunds, and Assessments
Returns and Payments
Under this order, importers are required to file quarterly returns. If a return is inaccurate or delayed, assessment provisions will apply to address any discrepancies.
Refunds
For refunds, claims must be processed within 180 days. However, for larger refund amounts, higher administrative approval is mandatory to ensure accountability.
Tax Adjustments
In addition to simplifying compliance, the order allows deductions for goods that have already been taxed, exempt items, or those delivered outside the local area.
Implications for Stakeholders
1. Resolution of Pending Cases
For businesses with unresolved cases under the entry tax framework, the order offers a structured resolution process.
2. Enhanced Compliance Obligations
Importers, in particular, must adhere to the registration requirements and comply with retroactive provisions outlined in the order.
3. Simplified Tax Adjustments
Furthermore, the refund and deduction mechanisms introduced by this order aim to simplify compliance for businesses transitioning to GST.
4. Streamlined Dispute Resolution
Finally, the order ensures clarity for stakeholders by defining clear processes for assessments, refunds, and appeals.
This notification demonstrates Haryana’s commitment to resolving legacy tax challenges while aligning with the GST framework.
