The government would recognize the GST dispute settlement scheme furnishing a one-time chance for businesses for settling tax cases and preventing litigation.
The scheme shall be restricted with time which covers merely nominal GST violations and furnishes a one-time chance to settle the former disputes under excise duty, service tax, and customs duty.
GST council must approve the scheme which is the supreme court decision-making body for the indirect tax.
“Discussions are on to allow businesses to settle cases, and once we are ready with the details, it may be taken to the Council,”
The Wilful tax evasion doesn’t get covered under the scheme.
The scheme does comply with the lines made by the centre Sabka Vishwas Scheme of 2019 that seeks to solve the legacy disputes concerned with the former service tax and central excise.
GST officials would be working on the devoted tribunals towards the resolution of the issues.
The council would set the tribunals that consume time and in the interim, a one-time dispute settlement process that might support cleaning up small disputes.
“There are instances where the department has spent more money on pursuing the litigation than the tax claims,”
Industries have asked the government for the same scheme.
“Given GST law has evolved over a period of last five years, any scheme in the one-time settlement of the past disputes, formation of settlement commission, would help the industry in settling the past disputes and help in reducing litigation for the department,”
The Taxpayer of GST who had done the mistakes must be treated as a part of the settlement.
“Given that there were interpretational issues on account of GST being a new legislation, an amnesty scheme covering the inadvertent mistakes of the taxpayers should definitely be considered by the government,”
