GST amnesty scheme announced for defaulters

The Union Finance Ministry has come out with an amnesty scheme for filing appeals against Goods and Services Tax (GST) demand orders.The scheme, which will be open till January 31, 2024, will be available for entities that were unable to submit their appeals against orders issued by the tax officer on or before March 31, 2023, according to the Central Board of Indirect Taxes and Customs (CBIC).

The CBIC issued a notification with respect to the scheme on Thursday. So far, the GST law allowed an assessee to file an appeal against an assessment order seeking taxes within three months of the tax officer passing such a demand order. This can be extended by one more month. In its last meeting on October 7, the GST Council had approved this amnesty scheme for filing appeals. The entities willing to avail of the scheme will have to pre-deposit 12.5 per cent of the tax demand, against 10 per cent currently.

The move will facilitate a large number of taxpayers, who could not file an appeal in the past within the specified time period. Rajat Mohan, senior partner at AMRG & Associates, said the scheme would be a lifeline for those who might have missed the appeal deadline due to administrative errors or unforeseen circumstances. This initiative can also promote enhanced compliance among taxpayers. By offering a fair and lenient approach to appeal filing, it encourages better cooperation with tax authorities and a willingness to resolve disputes or clarify tax matters.

“Additionally, by allowing disputes to be resolved more efficiently, the scheme may reduce the burden on the legal system. This benefits both taxpayers and the tax administration by streamlining the appeal process and potentially reducing the need for prolonged litigation,” Mohan added.