Arjuna (Fictional Character): Krishna, The GST Council, in its 52nd meeting recommended granting amnesty to taxpayers who could not file an appeal. In compliance with the above GST Council recommendation. The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 53/2023 on November 2, 2023 regarding special amnesty scheme for taxpayers facing issues with filing appeal, what are those announcements introduced in special amnesty scheme?
Krishna (Fictional Character): Arjuna, Under this GST Amnesty Scheme, specified GST taxpayers who disagree with a GST tax demand order issued under Section 73 or 74 are eligible for the GST Amnesty Scheme and can file an appeal till January 31, 2024.
Arjuna (Fictional Character): Krishna, who are those Specified GST Taxpayers?
Krishna (Fictional Character): Arjuna, only specified taxpayers can make use of this GST Amnesty scheme to file an appeal against a GST tax demand order. The specified taxpayers are:
- Those who could not file an appeal against the GST demand order passed by the GST proper officer on or before March 31, 2023, and
- If the earlier appeal against the GST demand order were rejected solely on the grounds that the said appeal was filed after the deadline was over.
The benefit of the amnesty scheme can be availed for any GST demand order issued on or before March 31, 2023. Few high courts given decision that any GST demand order issued after March 31, 2023 can also avail the benefit of this scheme.
Arjuna (Fictional Character): Krishna, how to apply for such GST Amnesty Scheme ?
Krishna (Fictional Character): Arjuna, The appeal under the GST Amnesty Scheme against the GST tax demand order must be filed using GST Form APL-01. This is the only form required to file an appeal in the GST Amnesty Scheme.
Arjuna (Fictional Character): Krishna, how to file for such GST Amnesty Scheme ?
Krishna (Fictional Character): Arjuna, To file the GST APL-01 form under the amnesty scheme, a taxpayer must do as follows :
- Once a taxpayer receives a GST demand notice, he needs to understand whether the tax notice is fully or partially incorrect. If the taxpayer fully disagrees with the GST demand notice, then 12.5% of the disputed amount must be deposited with the GST department. The disputed amount cannot exceed Rs 25 crore.
- Out of the 12.5% amount to be deposited, a minimum of 20% (i.e., 2.5 per cent of the tax under dispute) must be paid through an 'Electronic Cash Ledger'. The balance of 80% can be paid through the Electronic Credit Ledger.
Arjuna (Fictional Character): Krishna, which are the important points to remember ?
Krishna (Fictional Character): Arjuna, important point to remember while depositing amount is that 12.5% of Disputed amount includes only tax amount and it excludes interest and penalty. No refund shall be granted till the disposal of the appeal.
Arjuna (Fictional Character): Krishna, what should one learn from this?
Krishna (Fictional Character): Arjuna, The introduction of the amnesty scheme is a welcome move, giving a sigh of relief to taxpayers who had exhausted the statutory time limit to file appeals. The benefit is available upon payment of additional pre-deposit (of 2.5% of the Tax in Dispute through Electronic Cash Ledger) which may cause hardships to taxpayers in settlement of disputes for the past period and for those who cannot file appeal within 90 days.
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