Himachal Government approves legacy cases resolution scheme for faster settlements

The Himachal Pradesh government has launched a new scheme to resolve pending tax cases and boost revenue collection. Chief Minister Sukhvinder Singh Sukhu announced the Sadhbhawana Legacy Cases Resolution Scheme, 2025, which aims to settle around 3,500 pending cases and collect approximately ₹10 crore in revenue.

New scheme covers more cases

This new scheme is different from previous ones because it will also cover cases under non-subsumed enactments. Some state taxes, like those on petroleum products (diesel and petrol), were not included under the Goods and Services Tax (GST). The new scheme will now address tax disputes related to these products up to the financial year 2017-18.

The government’s main goal is to reduce the number of court cases related to taxes and ensure that businesses and taxpayers can settle their disputes quickly. Himachal Pradesh has introduced three similar schemes in the past, and they have been very successful in clearing pending cases and increasing revenue collection.

Since the introduction of GST on July 1, 2017, many state-level taxes like entry tax, entertainment tax, and luxury tax were merged under the new system. However, many tax-related disputes from before 2017 were still unresolved.

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To solve this issue, Himachal Pradesh launched three previous Legacy Cases Resolution Schemes, which helped settle 48,269 tax cases and brought in ₹452.68 crore in revenue. The new scheme is expected to continue this success by addressing the remaining cases.

Government's commitment to tax reforms

The state government has been actively working to reduce litigation and improve its tax collection system. By introducing these schemes, the government is ensuring that businesses and individuals can clear their old tax dues without long legal battles.

In addition to tax reforms, Chief Minister Sukhu also expressed condolences over the recent stampede at Maha Kumbh in Prayagraj, Uttar Pradesh. He prayed for the victims and wished a speedy recovery for the injured.