As we all are aware, Central and State Governments have shown their interest in closing pending cases under erstwhile regime on introduction of GST.

As a part of this endeavor, Gujarat Government issued a VAT / CST amnesty scheme on 11 Sept 2019 to be effective from 15 Sept 2019. However,on receipt of various representations form tax bodies and associations, Government of Gujarat has issued Notification No. 10/2016-1006-Th dated 06 December 2019 which will override original notification dated 11 Sept 2019. Applications received under Vera Samadhan Scheme from 15 Sept 2019 to 06 December 2019 as per original notification shall be considered as valid and shall be covered as per norms of current notification.

Please find below synopsis of the scheme for your reference:

This scheme shall cover dues under The Gujarat Sales Tax Act, The Gujarat Value added Tax Act, Central Sales Tax Act, 1956, The Gujarat Tax on Entry of specified goods into local areas Act, 2001, The Bombay Sales of Motor Spirits Taxation Act, 1958 and The Gujarat Purchase Tax on Sugar cane Act, 1989 which are subsumed, sub-merged or abolished on account of GST implementation.

Scope of the Scheme:

– Pending cases under Assessment, Appeal, Revision Appeal. However, total pending demand of Asseessee in all previous years (including Tax, Interest and Penalty) should not exceed Rs. 100 Cr;

– Assessee whose Assessment or Revision is pending can take benefit of the scheme on voluntary basis;

– Benefit of the scheme can be taken on all business transaction till 30 June 2017

Available benefits under the scheme: 

Para Assessee Covered Available Benefit
4.1 Regular Assessee – 100% remission of Interest and Penalty on payment of 100% tax dues;

– Amount paid before application date shall be adjusted against pending dues first and than balance dues to be paid;

– If amount paid is more than tax dues, no refund shall be given

4.2 Turnover increased at the time of assessment – 100% remission of interest and penalty on payment of 120% of original dues (without considering increment in turnover);

– Amount paid before date of application shall be adjusted against pending dues first and than balance dues to be paid;

– If amount paid is more than tax dues, no refund shall be given

4.3 Cases other than Para 4.2 and cases wherein penalty levied under Section 34(7) of GVAT Act, 2003 – Assessee shall be given benefit as per Para 4.1

– Assessee covered under increased turnover case and penalty u/s 34(7) has been levied, such assessee shall be covered under Para 4.2

4.4 Voluntary Disclosure – Asseessee whose Assessment, etc., is pending can make voluntary disclosure of the dues payable

– In such cases remission of interest and penalty to be provided;

– However, at the time of assessment, if additional liability determined, such amount shall be required to be paid as per demand raised

– At the time of assessment, if computed total liability is less than amount disclosed voluntarily, refund shall not be allowed on such excess amount paid

4.5 Only Interest / Penalty Orders (Other than bogus billing cases) – In case of orders containing only interest or penalty OR interest and penalty (other than bogus billing cases), 80% remission of total dues shall be provided on payment of 20% amount.
5. Benefit available in Appeal Cases
5.1 Pending appeal for CST cases – Assessee can take benefit for pending Forms;

– Application to be made to Appellate Authorities and Ghatak Officer to intimate on willingness for taking benefit of the scheme. Appeal pertaining to other matters in the same appeal has to be taken back.

– No further appeal shall be made against the appeal case considered under this scheme.

– 50% of tax determined to be paid for Forms not verified at the time of verification under this scheme, remission for balance 50% of tax, interest and penalty to be provided.

– In case of products with tax rate less than 5%, full amount of tax for un-verified forms to be paid. Remission for interest and penalty to be provided

5.2 Appeal Cases other than specified at Para 5.1 – All cases under Appeal other than covered under Para 5.1 can be withdrawn on singular basis or for entire appeal.

– Benefit / remission for such individual case / appeal as whole to be considered as per details and explanation provided at Para 4.

6 Benefit available in Appeal Cases filed by Departmental Authorities – Benefit of the scheme is available in case of Appeal in Tribunal or higher courts made by departmental authorities;

– Cases whereby dispute is on account of higher rate of tax for products, application of scheme to be admitted if assessee accepts demand as per higher tax rate

Timeline for making application:

– Application can be made online till 10 Jan 2020;

– Acknowledgement of online application to be submitted along with requisite documents at respective Ghatak by 18 Jan 2020;

– Online intimation by Ghatak officials on payable amount to be sent by 28 Feb 2020;

Timeline for making payment of dues:

– 10% of the total amount to be paid by 15 March 2020;

– Remaining 90% amount to be paid in 11 equal installment from April 2020;

– Monthly installment to be paid before end of the month;

– Monthly installment if not paid by last date of the month can be paid with 1.5% interest by 20th of next month;

– If assessee fails to make payment of installment within due date, benefit of scheme to be forfeited

Other Important Points:

– Pending cases on account of Bogus Billing will not be covered under this scheme;

– Fugitive Criminals under The Extradition Act, 1962 can not take benefit of the scheme;

– Any refund or set-off of extra amount deposited not to be provided;

– Remission order to be submitted by Ghatak Offices;

– Order of Commissioner on amount of remission to be considered as full and final and no Appeal in any court can be made against such order

Download Detailed FAQs on revised scheme which has been issued on 10 December 2019. You may check the same for any further clarification/doubts on the matter.

Feel free to connect if you require any additional information / clarification in this regard.

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Qualification: CA in Practice
Company: A ALWANI & CO
Location: Gujarat, IN
Member Since: 10 Nov 2018 | Total Posts: 13
Amrin has over 6 years experience in the field of Indirect Tax advisory and compliance including working with KPMG before she commenced her journey as an entrepreneur. In her new role from May 2017, she has been providing Business and Tax Advisory Services to various organisations. Her skill sets View Full Profile

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3 Comments

  1. CHIRAG GANDHI says:

    Can anyone tell me.
    I paid 1st installment in April, 2nd in may, 3rd in june 4th in july in vera samadhan yogna – 2019 . Now as per new amendmend how to pay my remaining installment ?

    Either continue to pay or taking gape for 4 months. ?

  2. Chetan Shah says:

    We have received VAT assessment order of FY 2015-16 in Feb 2020,with some basic Tax + Interest + Penalty to pay which is yet not paid till today by us.

    Under extension of scheme till dt.31-Jul-2020, can we apply, freshly, for removal of Interest & Penalty & will pay only basic amount as per order.

    1. amrinalwani says:

      Hello Sir, please note that extension given under Order no. 20 dated 17 June 2020 is for payment of dues already declared in the scheme and Hence, you can now can not make a new application as time limit for fresh application has been lapsed

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