Mumbai, March 28 Hindustan Aeronautics Limited (HAL) has settled long-pending tax dues under the Maharashtra Tax, Interest, Penalty, or Late Fee (Settlement by Public Sector Undertakings) Act, 2025. Under this scheme, HAL has paid Rs 2,470.97 crore in a single payment.
“To resolve long-standing tax disputes for the pre-GST tax period with Public Sector Undertakings (PSUs), the Maharashtra Government announced ‘Abhay Yojana 2025’ during this budget session. Under the ‘Maharashtra Abhay Yojana 2025 for Pre-GST Tax Laws’, Hindustan Aeronautics Limited (HAL) has become the first PSU in Maharashtra to settle outstanding tax dues. As a significant development for the Maharashtra Goods and Services Tax Department (MGSTD), Hindustan Aeronautics Limited (HAL) successfully settled long-pending tax dues under the Maharashtra Tax, Interest, Penalty, or Late Fee (Settlement by Public Sector Undertakings) Act, 2025. Under this scheme, HAL has paid Rs 2,470.97 crore in a single payment,” a statement read.
It further said, “This record resolution of Rs 9,752.53 crore in total outstanding dues marks a significant milestone in Maharashtra’s tax history, reinforcing the state's commitment to streamlining tax compliance and resolving long-standing disputes.”
According to the state government, the tax disputes resolved under this scheme had been pending for over 35 years, with some cases dating back to 1986. The settlement has successfully resolved disputes arising under various pre-GST tax regimes, 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 dues under pre-GST tax laws are encouraged to take advantage of this tax waiver scheme.
This scheme is exclusively for public sector undertakings where only 30 per cent of the pending tax dues for the period up to March 31, 2005, and 50 per cent of the pending tax dues for the period from April 1, 2005, to June 30, 2017, need to be paid, while the interest and penalty will be completely waived off. Pending tax disputes can be settled before the deadline of December 31, 2025, said the release.
Deputy Chief Minister and Finance Minister Ajit Pawar during the presentation of the annual Budget for 2025-26 on March 10 proposed this amnesty scheme of the State Tax Department for the public sector undertaking companies for clearing their arrears. The scheme is titled ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty’ or ‘Late Free Act 2025’. It will be in force from the commencement of the Act till December 31, 2025.
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