Mumbai, March 28 (NationPress) Hindustan Aeronautics Limited (HAL) has successfully cleared its longstanding tax obligations under the Maharashtra Tax, Interest, Penalty, or Late Fee (Settlement by Public Sector Undertakings) Act, 2025. As part of this initiative, HAL has made a substantial payment of Rs 2,470.97 crore in one transaction.

“To address enduring tax disagreements for the pre-GST tax era involving Public Sector Undertakings (PSUs), the Maharashtra Government introduced ‘Abhay Yojana 2025’ during the recent budget session. Under the ‘Maharashtra Abhay Yojana 2025 for Pre-GST Tax Laws’, HAL has become the first PSU in Maharashtra to resolve its tax dues. This substantial progress for the Maharashtra Goods and Services Tax Department (MGSTD) signifies HAL’s successful settlement of longstanding tax dues under the Maharashtra Tax, Interest, Penalty, or Late Fee (Settlement by Public Sector Undertakings) Act, 2025. As part of this scheme, HAL has made a payment of Rs 2,470.97 crore in a single transaction,” stated a release.

It elaborated, “This landmark resolution of Rs 9,752.53 crore in total dues marks a pivotal moment in Maharashtra’s tax history, emphasizing the state's dedication to enhancing tax compliance and resolving lengthy disputes.”

According to the state government, the tax issues resolved under this scheme had remained unresolved for over 35 years, with some cases dating back to 1986. The settlement has effectively addressed disputes arising from various pre-GST tax regulations, including the Bombay Sales Tax (BST), Central Sales Tax (CST), and Maharashtra Value Added Tax (MVAT) Acts. Other Public Sector Undertakings (PSUs) with pending tax obligations under pre-GST tax laws are encouraged to utilize this tax waiver initiative.

This initiative is specifically designed for public sector undertakings, where only 30 percent of the pending tax dues for the period up to March 31, 2005, and 50 percent of the pending tax dues for the period from April 1, 2005, to June 30, 2017, need to be settled, while the interest and penalties will be entirely waived. Outstanding tax disputes can be resolved by the deadline of December 31, 2025, according to the release.

During the presentation of the annual Budget for 2025-26 on March 10, Deputy Chief Minister and Finance Minister Ajit Pawar proposed this amnesty initiative by the State Tax Department for public sector companies to clear their outstanding dues. The scheme is titled ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty’ or ‘Late Free Act 2025’. It will be effective from the commencement of the Act until December 31, 2025.