Avail the opportunity before 31st January 2024! Explore the Central Govt’s Amnesty Scheme for GST appeals, offering an extended deadline and enhanced pre-deposit. Understand the process outlined in Notification No. 53/2023 and seize the chance to resolve tax disputes effectively.
Central Govt notifies Amnesty Scheme for Condoning Delay in Filing Appeals; File your Appeals before 31st January 2024 vide Notification No. 53/2023– Central Tax Dated: 2nd November, 2023.
1. The 52nd GST Council came out with an amnesty scheme, giving taxpayers time till January 31, 2024, to file appeals against demand orders passed by tax officers till March 2023.
2. As per Section 107 (1) of the CGST Act 2017, a Taxpayer can file an appeal against an Order in Original seeking differential taxes within three months of the tax officer passing such an order. This can be extended by one more month under exceptional circumstances by condoning the delay, by the Appellate Authority in terms of Section 107(4) of CGST 2017 if he is satisfied that the Appellant was prevented by sufficient cause from presenting the Appeal within the prescribed periods.
3. In its recommendation the 52nd GSTC gave extra time to GST-registered businesses to file appeals with an enhanced pre-deposit against the tax demand, to avail the extended time limit and be part of the dispute resolution mechanism notwithstanding the original time limitations.
4. The council had recommended that a period till January 31, 2024, may be given for filing of appeals by taxpayers for all orders passed till March 31, 2023, who had missed the deadlines, but with a condition of an enhanced pre-deposit.
5. In line with the recommendations the Central Government has issued Notification No:53/2023 (CT), dated 02nd November 2023 wherein the process and procedures with reference to the said “Amnesty Scheme” has been drawn the details of which are as follows: –
(a) The said aggrieved person shall file an appeal against the said order in *FORM GST APL-01* in accordance with sub-section (1) of Section 107 of the said Act, on or before 31st day of January 2024.
(b) Provided that an appeal against the said order filed in accordance with the provisions of section 107 of the s CGST Act, 2017 and pending before the Appellate Authority before the issuance of this notification, shall be deemed to have been filed if it fulfils the condition specified in the notification of the scheme referred supra.
(c) The appeal shall be filed under this scheme only if the appellant has paid-
-
- in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
- a sum equal to twelve and a half per cent. of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed,
-
- out of the amount payable at least twenty percent (20%) should have been paid in cash by debiting from the Electronic Cash Ledger
(d) It has also been categorically affirmed that, No refund shall be granted on account of this scheme till the disposal of the appeal, in respect of any amount paid by the appellant, either on their own or on the directions of any authority (or) court, in excess of the amount specified through this scheme before the issuance of this notification, in terms of section (1) of Section 107 of the CGST Act 2017.
6. An appeal under this scheme shall not be admissible in respect of a demand not involving taxes. So any litigation exclusively with reference to late fees, fines, penalties or even interest payable disputes cannot take shelter under this extended time limit.
7. The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017 from Rule 108 to 116 of CGST Rules 2017 which deals with Appeals and Revision procedures shall mutatis mutandis, apply to an appeal filed so that there is conflict between the legislative competence and the procedures prescribed under the rules thereunder in respect of this Scheme notified
Before bidding adieu…….
8. This “amnesty” of extension of time limit for filing appeals till January 2024 for all the orders passed till March 2023 will without an iota of doubt facilitate a large number of taxpayers, who missing the bus, could not file an appeal in the past within the specified time period, and provide one more opportunity to get their litigations redressed and seek justice.
9. This would have definitely brought a sigh of relief for the business community, particularly smaller taxpayers, struggling to navigate the economic uncertainties brought about by the COVID-19 pandemic and those who were unable to file their appeals before the first appellate authorities within specified time due to various issues. The taxpayers will have the opportunity to contest tax-related issues on their merits rather than acquiescing to tax demands lacking substantial basis.
10. This effort of the Government is primarily channelled into addressing post-implementation challenges, with a focus on the inevitable litigations. The existence of a strong dispute resolution mechanism for timely resolution of the disputes is profoundly significant, for both taxpayers and the Government, leading to certainty in the tax positions. This will boost the confidence of the Taxpayers and consequently improve compliance levels.
11. This should be considered as a very progressive and positive step of business facilitation.
Jai Hind…………..
Author Bio
Good move by the Government for redressal of grievances especially those missed to file an appeal against the demands. But in my opinion had the amnesty scheme included fines and penalties esp for demands pertaining 2017-18 and 2018-19, when the portal was also not fully operative, a big relief for taxpayers irrespective of the outcome of appeal, Anyway if demands are agitated and any relief obtained, consequently the rest follows.
Good narration by the Author.