GST Amnesty Scheme

GST Amnesty Scheme

GST Amnesty scheme are various resolution scheme to settle tax dispute or to settle pending litigation. GST Amnesty scheme provided by Government under various names such as SVLDRS.

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GST amnesty scheme, indirect tax amensty schemes

Sabka Vishwas (Legacy dispute Resolution) Scheme, 2019 [SVLDRS]

Government use to bring amnesty scheme as and when required in order to reduce litigation and to resolve the matter by waiver of certain percentage of Tax, interest or penalty as per the scheme. After GST implementation, considering GST amensty scheme, Government introduce SVLDRS 2019.

GST in India come into effect from 01st July 2017, being in the nature of indirect tax this GST has replaced may other indirect tax which was levied erstwhile prior to 01st July 2017 by Central Government and State Government.

Taxes which were replaced by GST are:

Indirect Taxes levied by Central Government prior to 01st July 2017Indirect Taxes levied by State Government prior to 01st July 2017
  • Central Excise Act 1944 refer with Central Excise Tariff Act 1985
  • Additional Duty of Excise Act 1957
  • The medicinal and Toilet preparation (Excise Duties) Act 1955
  • The mineral Products (Additional Duties of Excise and Customs) Act 1958
  • Service Tax Finance Act 1994
  • Surcharge and Cesses
  • VAT levied by respective states
  • Central Sales Tax Act 1956
  • Purchase Tax
  • Entry Tax
  • Entertainment Tax
  • Luxury Tax
  • Taxes on lottery, betting & Gambling
  • Surcharge and Cesses

Considering long pending litigation relating to taxes exited in pre-GST era, the Government came up with most awaited GST Amnesty scheme in Indirect taxes. The Sabka Vishwas Scheme, 2019 is a scheme introduced in Union Budget 2019 to resolve all disputes relating to erstwhile indirect taxes which were subsumed into GST. Sabka Vishwas (Legacy dispute Resolution) Scheme, 2019 has been notified by CBIC and came into effect from 01st September 2019 forming part of GST Amnesty Scheme.

Functionality of SVLDRS

  • Any person who wishes to avail the benefit of this scheme can file a declaration online on the portal of CBIC which can be accesses on in proper form SVLDRS-1, for each case separate declaration need to be filed.
  • The Designated Committee shall scrutinize the declaration submitted in SVLDRS-1 and if the estimated payable amount turns to be more than declared amount, then such designated committee shall issue estimated payable amount in SVLDRS-2 within 30 days of submission of SVLDRS-1 along-with opportunity of being heard.
  • The person to whom SVLDRS-2 is issued, may accept or may raise an objection and may also request for adjournment of hearing on or before due date mentioned in SVLDRS-2. The person can raise its request in form SVLDRS-2A, in case any communication is not received in SVLDRS-2A from the tax payer then the designated committee make its decision based upon the records available.
  • Designated Committee shall issue final payable amount in form SVLDRS-3 within period of 60 days from the receipt of declaration in SVLDRS-2A. If there is nil amount payable or there is no appeal pending in either in High Court or Supreme Court then statement in form SVLDRS-3 will not be issued.
  • Finally after payment of all liability by the taxpayer, the designated committee shall issue Discharge certificate in SVLDRS-4 within 30 days of payment of full an final amount.

Relief provided in GST amnesty Scheme under SVLDRS 2019 is ranging from 40% to 70% as mentioned:

Relief Available from the Duty DemandFor Cases Pending Adjudication or AppealFor Cases of Confirmed Duty Demands (Where No Appeal is Pending)For Cases of Voluntary Disclosure
Duty demands up to INR 50 lakhs70%60%The full amount of duty disclosed
Duty demands more than INR 50 lakhs50%40%

With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your GST amnesty scheme disclosure and thereafter will provide you detailed analysis mentioning the law requirement and compliance need to fulfill in order to carry out SVLDRS disclosure economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely GST Amnesty Scheme compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need for GST Amnesty Scheme.