GST Amnesty Scheme

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Overview:

The finance ministry has come out with an amnesty scheme for filing appeals against Goods and Services Tax (GST) demand orders.

About GST Amnesty Scheme

  • The scheme will be open till January 31, 2024.
  • It 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,
  • The scheme aims to help those who missed the deadline for filing appeals due to various reasons, including administrative errors or unforeseen circumstances.
  • 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.
  • Significance
    • This initiative can also promote enhanced compliance among taxpayers.
    • A fair and lenient approach to appeal filing 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.

 What is Goods and Services Tax (GST)?

  • It is a single indirect tax which has replaced multiple indirect taxes in India such as the excise duty, VAT, services tax, etc.
  • It is levied on the supply of goods and services in India.
  • It came into effect from July 2017.
  • Objective: To remove the ambiguity and bring equality in the prices of products across the country.

Q1) What is the GST Appellate Tribunal?

The Central Goods and Service Tax Act, 2017 (CGST Act) in Section 109 mandates for the constitution of a GSTAT and its Benches. It will be the specialized appellate authority for resolving disputes under the GST laws.

Source: GST: Finance ministry launches amnesty scheme for filing appeals against demand orders