Good news for businesses having pending litigation cases under Gujarat VAT and related laws.
Gujarat Government, as promised in the State Budget 2019, has issued resolution no. GST-102019-2006-Th dated 11 September 2019 to provide an amnesty scheme. The pure purpose of this scheme is to reduce pending litigation, start afresh and smooth transition of GST.
We have highlighted some important aspect from scheme for your quick reference:
This scheme shall cover dues under following Acts which are subsumed, sub-merged or abolished on account of GST implementation:
Cust-off date for the scheme shall be 30 June 2017. That means, dues arising pursuant to audit assessment, re-assessment, revision, appeal, etc. for the transactions undertaken by the said date shall be covered under the scheme.
√ In-eligibility :
√ Quantification of Remission (Given at Table 1 below):
√ Application filing (general provision):
√ Issue wise Application filing:
√ Order wise Application filing:
Not mandatory to apply in the scheme for all orders. That means, application for only a particular assessment order is possible.
√ Payment under the scheme:
√ Voluntary application :
Benefit of Voluntary disclosure is also permitted under the scheme with undertaking that the dealer would be liable for payment of dues not declared as per the normal provisions. Remission to be granted in such cases would be that of a regular dealer category (as specified above).
√ Departmental appeal Cases:
√ Adjustment of amount paid before the scheme: Amount paid before the date of scheme shall be adjusted against interest, penalty and tax in sequential order.
√ Other conditions:
Happy to serve!!
Table – 1
|Type of dealer||Remission from tax||Remission from interest||Remission from penalty||Other conditions|
|Regular Dealer||No Remission||100%||100%||– Part of the tax paid, before the implementation of the scheme) shall be deducted (by way of remission) from the tax payable.
– Provided, such deduction would be restricted to 50% of the tax payable under the scheme
|Proceedings where penalty has been imposed u/s 34(7)
|No Remission||– Interest to be paid @ 20% of the interest payable.
– Provided, this amount should not exceed 50% of tax
payable. (That means, interest in excess of 50% of Tax shall be remitted)
|100%||– Part of the tax paid, before the implementation of the scheme shall be deducted (by way of remission) from the tax payable.
– Provided, such deduction would be restricted to 25% of the tax payable under the scheme
|Cases involving Entry tax and Motor Spirits tax||No Remission||Not Applicable||80%||Nil|