AMNESTY
SCHEME – GOVERNMENT SCHEME
News:
GST
Amnesty Scheme: Taxpayers Can File Appeals By Jan 2024 Against Demand Orders
Till March
What's
in the news?
● The
finance ministry recently introduced an amnesty scheme for filing appeals
against Goods and Services Tax (GST) demand orders.
Amnesty
scheme:
● The scheme is for those
taxpayers who could not file it for technical or administrative reasons.
● The
amnesty scheme also encompasses taxpayers whose appeals were previously
rejected solely due to the failure to meet the specified time limits as defined
in section 107.
● This
approach can help reduce the burden of litigation benefiting both taxpayers and
tax authorities.
GST
Amnesty Scheme 2023:
1.
Amnesty Plan for Tax Appeals:
● Taxpayers
can contest demand orders issued by tax inspectors until January 31, 2024.
● The
deadline for filing appeals has been extended to provide taxpayers with more
time to respond to assessment orders.
2.
Increased Pre-Deposit:
● To
avail of the extended appeal period, taxpayers are required to make an
increased pre-deposit of 12.5%, up
from the previous 10% of the tax demand.
● A
portion of the pre-deposit, at least 20% or 2.5% of the tax under dispute, must
be debited from the Electronic Cash Ledger.
3.
Clarification on Property Attachments:
● The
validity of property attachments by tax authorities is now limited to one year, after which the attached property must be
released.
● This
amendment ensures that temporary seizures of assets do not unduly affect
businesses’ operations.
4.
Facilitating Taxpayers:
● The
GST Council’s decisions are aimed at making the GST system more taxpayer-friendly and providing relief to those facing
challenges related to GST matters.
● The
extended deadline incentivizes adherence to tax regulations and encourages the
expeditious resolution of disputes.
5.
Efficiency and Transparency:
● The
changes introduced by the GST Council contribute to enhancing transparency and
fairness in the GST system.
● The
amendments streamline procedures related to appeals and property attachments,
ultimately fostering a more efficient and taxpayer-friendly GST regime.