The Gujarat Government Finance Department has introduced the amnesty scheme vide notification no. TAX-102022-900-Th dated 6 October 2022 in order to clear the pending appeals and dues which are booked under the pre-GST indirect tax regime. This one time settlement is introduced to help businesses from tax burdens and save time of both businesses and departments. This may ensure ease of doing business. We have tried encapsulating important aspects from the scheme for your quick reference:
Dues under below Acts are covered (which will be enacted separately for the purpose of waiver):
– Gujarat VAT Act, 2003;
– The Central Sales Tax Act, 1956; and
– The Gujarat Sales Tax Act, 1969
Cases / Categories covered under exemption / demand of levies as well as accrued interest:
– The tax demand and interest pertaining to the period before 31 March, 2006 amounting upto Rs. 1,00,000 (for each year) shall be dropped along with interest and resolved.
– The tax demand and interest pertaining to the period between 1 April, 2006 to 31 March 2017 amounting upto Rs. 50,000 shall be dropped along with interest and resolved.
– Only the final order out of provisional assessment/audit assessment/rectification or dispute orders issued by 31 August 2022 shall be considered;
– In case of issue based assessment, total demand as per any financial order for the relevant assessment year shall be considered for limit under this scheme;
– Demand amount under this scheme shall mean Total Amount including Tax, Interest and penalty as per the final order;
– Benefit of scheme is also available in cases wherein existing demand is only for interest and penalty;
Eligibility: Only those firms which are not registered under GST and whose business is closed as on the date of this resolution will be eligible for the benefit;
In Eligible Category:
– Demand pertains to cases of bogus billing where sales bills were issued without actual sale of goods;
– Persons who have been declared fugitive by the government of India under Extradition Act will not be eligible for the scheme;
– In cases where assessment proceedings are undertaken for orders issued prior to 01 Sept 2022 which are currently pending shall not be eligible for this benefit;
– In cases where Appeal has been filed by the revenue in Tribunal or court of law which is pending before the court shall not be eligible for the benefit;
Other Important Points:
– For the cases eligible for this benefit, pending Appeals filed by the Trader / Tax payer shall be submitted by the Appellate Authority and no submission or confirmation for availment of scheme is required by the Taxpayer. However, if the taxpayer wants to continue with the Appeal, such written information is required to be submitted within 30 days from the date of resolution to concerned Appellate Authority;
– Pursuant to this scheme, in case of any refund arising for any reason, such refund shall not be admissible nor shall such excess amount be set off against other outstanding charges;
– No refund shall be allowed for advance deposit made by the merchant;
– Decision of State Tax Commissioner regarding granting of benefit of tax exemption under this scheme shall be final and no appeal shall lie before any court or authority against such decision.
We have attached a copy of order for your quick reference. Feel free to connect if you require any additional information / clarification in this regard.
Happy to serve!!
Team A Alwani & Co, Chartered Accountants