Related Topics: Government Schemes, Dispute Resolution
- In the Union Budget 2019-20, Finance Minister has announced the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019.
- The Scheme has now been notified and will be operationalized from 1st September 2019 and would continue till 31st December 2019.
- Government expects the Scheme to be availed by large number of taxpayers for closing their pending disputes relating to legacy Service Tax and Central Excise cases that are now subsumed under GST so they can focus on GST.
About the Scheme
The Scheme is especially tailored to free the large number of small taxpayers of their pending disputes with the tax administration.
(i) Dispute Resolution
It is aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed under GST and are pending in litigation at various forums.
It offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law.
- The most attractive aspect of the Scheme is that it provides substantial relief in the tax dues for all categories of cases as well as full waiver of interest, fine and penalty.
- In all these cases, there would be no other liability of interest, fine or penalty.
- There is also a complete amnesty from prosecution.
- For all the cases pending in adjudication or appeal – in any forum – this Scheme offers a relief of 70% from the duty demand if it is Rs.50 lakhs or less and 50% if it is more than Rs. 50 lakhs.
- In case of voluntary disclosure, the person availing the Scheme will have to pay only the full amount of disclosed duty.