Uttar Pradesh Interest Waiver Scheme 2026: Relief on Outstanding Commercial Tax Dues:
The Government of Uttar Pradesh has introduced the Interest Waiver Scheme 2026, offering substantial relief on historical tax liabilities. Under this scheme, businesses can avail of significant interest waivers on outstanding principal tax amounts accrued up to December 31, 2025
Interest Waiver Slabs:
The percentage of interest waived is structured progressively based on the total outstanding principal tax amount:
a) Up to Rs 10 Lakh: 100% interest waiver
b) Rs 10 Lakh to Rs 1 Crore: 90% interest waiver
c) 1 Crore to Rs 5 Crore: 75% interest waiver
d) Above Rs 5 Crore: 50% interest waiver
Scope and Eligibility:
The scheme covers eligible outstanding dues up to December 31, 2025, under the following specified tax laws:
a) Uttar Pradesh Trade Tax Act
b) Central Sales Tax (CST) Act
c) Uttar Pradesh Value Added Tax (VAT) Act
d) Uttar Pradesh Entry Tax Act
e) Uttar Pradesh Entertainment Tax Act
Next Steps for Applicants:
To ensure compliance and maximize the benefits of this settlement window, taxpayers are advised to:
a) Review the Official Gazette: Carefully read the comprehensive notification issued by the state government.
b) Verify Outstanding Dues: Reconcile your books of accounts with the records of the UP Commercial Tax Department.
c) Consult Professionals: Engage with your legal or tax advisor to evaluate eligibility and execute the application process accurately.