Settle your service tax, excise disputes with this special window; govt offer for businesses hit by GST

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Updated: July 19, 2019 11:33:33 AM

With two years of GST roll out having passed, significant number of pending litigations have become an area of worry.

GPF, general provident fund, Interest Rate, जीपीएफ पर ब्याज दरों में कमी, govt employee, retirement fund, gpf, finance ministryThe taxpayers could avail several benefits seeing the waivers proposed and the immunity from penal consequences, accounting and advisory firm EY said in a report.

With two years of GST roll out having passed, significant number of pending litigations have become an area of worry. India has significant amount of pending litigation from the pre-Goods and Services Tax (GST) regime estimated at Rs 3.75 lakh crore. The proposal of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 is a good move aimed at closure of litigations under Central Excise and Service Tax laws and help the businesses to move on, experts said. The taxpayers could avail several benefits seeing the waivers proposed and the immunity from penal consequences, accounting and advisory firm EY said in a report.

“It also provides a one-time opportunity to settle all past disputes while stepping into a new tax era and thereby may facilitate the ease of doing business. Businesses should evaluate the benefit of the scheme, especially taking into account the full waiver of interest, penalty and prosecution,” it added.

Key things to know

  • Along with complete waiver of interest and penalties, the relief granted under the scheme ranges from 40 per cent to 70 per cent of tax dues.
  • The tax must be paid in cash. The utilisation of input credits is not allowed under the scheme.
  • The taxpayer shall not be liable to pay any interest, penalty or prosecution on tax payment.
  • The matter and time period covered by such declaration will not be reopened in any other proceeding.
  • The scheme would come into being from the date to be determined and notified by the central government.

The rules of the scheme which aims to resolve the pending litigation as on 30 June 2019 carried forward from the pre-GST regime and pending right up to the Supreme Court would only come into force once the finance bill receives the President’s assent.  The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019targets to conclude the pending litigation as on 30 June 2019.

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