GST Appeal Amnesty Scheme 2023, as per recommendation of 52th GST Council meeting dated 07 oct 2023.
Background
In the context of recent judgment in case of Baghel Trading Co. vs. State of U.P. (Writ Tax No. – 1056 of 2023) vide order dated 03/10/2023, has put a significant legal milestone in the context of GST disputes. he dealing with fundamental questions of order communication and service, Allahabad High Court, raises broader concerns about the intricacies of the law, the use of the GSTN Portal, and the practical implications for taxpayers. Therefore the matter was also discussed at 52th GST Council meeting for providing Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time period.
For the purpose of Implementation of above scheme CBIC issued the notification No. 53/2023– CT dated 02 Nov 2023. Details of the same are as below,
1. Who can claim the benefit of the Amnesty scheme?
a. Taxable persons who could not file within period of 3 months (from the date of order), against the order passed by the GST officer on or before the 31st day of March, 2023 under section 73 or 74 of the CGST Act 2017.
b. The taxable persons whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period of 3 months from the date of order.
2. What is the time limit for avail the Scheme?
A Taxable person intends to avail the benefit of the scheme, can file the appeal on or before 31 Jan 2024, In form APL 01.
3. What are the pre-condition of the Scheme?
A taxable person willing to avail the benefit of the scheme, should pay,
a. In case of Accepted / Admitted liability:- Full amount of tax, interest, fine, fee and penalty arising from the referred order.
b. In case of Disputed Liability:- 12% of the disputed tax or Rs 25 Crore, whichever is lower. And the same shall be paid in the following manner.
i. 2.5% of the disputed tax shall be compulsorily paid from Electronic Cash ledger.
ii. Balance 10% can be paid either through Electronic Credit ledger (If balance is available) or Electronic cash ledger.
4. Which orders are not eligible for this scheme?
In case of any order, which does not involve any disputed tax, Benefit of the scheme is not available. i.e. Order is passed for Interest (as per Provision of Sec 50 of CGST Act) or Penalty etc.
Provision of Rule 108 to Rule 116 related Appeal and revision shall also be applicable for this Scheme.
Conclusion:
The GST Appeal Amnesty Scheme 2023 offers a second chance for taxpayers who missed the initial appeal window. It addresses the practical challenges faced by taxpayers and provides a path to resolve disputes. The introduction of this scheme underscores the willingness of the GST Council to adapt and provide flexibility, benefiting taxpayers while maintaining the integrity of the GST framework. As the scheme comes into effect, taxpayers should carefully assess their situations and take advantage of this opportunity to rectify past issues related to GST disputes. Please note that this article is based on the pre-release information from the 52nd GST Council meeting and Notification No. 53/2023– CT dated 02 Nov 2023, and it is advisable to refer to the official notification and related rules for precise details.
Disclaimer Above article is prepared based on the Pre-release of 52th GST council meeting and Notification No. 53/2023– CT dated 02 Nov 2023. And therefore it is advisable for refer the said Notification along with Rule under CH-XIII.
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