The total amount of funds that are locked up with the government in cases at various levels under service tax and central excise put together by the end of 2019 is more than Rs 4 lakh crore.
GST has entered the third year but the taxpayers are still struggling with their large amount of money stuck in the cases related to service tax and central excise. The total amount of funds that are locked up with the government in cases at various levels under service tax and central excise put together by the end of 2019 is more than Rs 4 lakh crore. This amount is stuck with the government in nearly 1.4 lakh cases, according to the data provided by Anurag Singh Thakur, MoS, Ministry of Finance, in a reply to a question in Lok Sabha today.
There are many cases that are resolved after Prime Minister Narendra Modi-led government launched the flagship dispute resolution scheme – Sabka Vishwas. “The total number of settlements done under the Sabka Vishwas (Legacy Dispute Resolution Scheme, 2019) as dated 05.02.2020 is 49,534 and the amount involved in these cases is Rs 24,970 crores,” Anurag Singh Thakur said.
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However, even as the Sabka Vishwas scheme has resolved the disputes of over 70 per cent eligible taxpayers, the big-ticket disputes still seem to be out of its reach. The Central Board of Indirect Taxes had earlier mentioned that over 73 per cent of eligible taxpayers have availed the Legacy Dispute Resolution Scheme and have committed to pay Rs 30,627 crores as tax dues. However, in terms of value, this amount is a small portion of the total disputed amount and this also indicates that the big tickets have yet not opted for the scheme.
Meanwhile, out of Rs 4.15 lakh crore, Rs 1.45 lakh crore is stuck at adjudication up to commissioner, Rs 8015 crore is stuck at the commissioner level, Rs 1.84 lakh crore is stuck at the Customs Excise and Service Tax Appellate Tribunal (CESTAT), Rs 45,893 crore is stuck at High Court level, and Rs 31,088 crore is stuck at the Supreme Court.