Retailers across various states are urging tax authorities to implement a simplified mechanism for the closure of legacy VAT assessments, citing prolonged uncertainty and administrative burden resulting from unresolved pre-GST tax matters. Many retailers argue that they have been subject to repeated scrutiny and reassessment notices even years after the transition to GST, despite having maintained diligent records and filed returns within the mandated timeframes. This lingering exposure to old tax claims has created a climate of compliance fatigue and diverted attention from business operations and growth planning.

Industry associations representing small and medium retailers have submitted proposals advocating for a structured closure scheme that would allow businesses to settle pending assessments based on declared turnover, with minimal documentation and limited verification requirements. They suggest that such a scheme should offer graded relief based on the size of the taxpayer and the nature of discrepancies, with full or partial waivers on penalties and interest for voluntary disclosures. These measures, they believe, would not only reduce litigation and departmental workload but also foster a cooperative relationship between businesses and the state revenue departments.

Tax experts have echoed these sentiments, pointing out that a well-designed closure framework could help tax administrations finalize assessments efficiently while boosting taxpayer morale. They caution, however, that the success of any such initiative would depend on clear eligibility criteria, fair valuation parameters, and safeguards against arbitrary rejection. With several states already experimenting with amnesty schemes and digital redressal platforms, a simplified and uniform model for VAT assessment closure could represent the final step in bringing the pre-GST tax era to a practical and equitable conclusion for retailers nationwide.