The finance ministry introducing an amnesty scheme streamlines the filing of appeals against Goods and Services Tax (GST) demand orders.
The scheme will be open until January 31, 2024, and it applies to entities that were unable to submit their appeals against orders issued by the tax officer on or before March 31, 2023, announced the CBIC issuing the notification regarding the scheme on Thursday.
Previously, the GST law allowed taxpayers to file appeals against assessment orders seeking taxes within three months of the tax officer’s issuance of the demand order, with a possible one-month extension.
However, the newly approved GST amnesty scheme provides relief to taxpayers who missed the appeal deadline. To avail of the scheme, entities will need to pre-deposit 12.5% of the tax demand, against the current 10% requirement.
This initiative aims to assist a significant number of taxpayers who, due to administrative errors or unforeseen circumstances, were unable to file appeals within the stipulated timeframe. A tax expert described the scheme as a lifeline for those who missed the appeal deadline and emphasized that it can promote better compliance among taxpayers.
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Furthermore, this amnesty scheme encourages improved cooperation between taxpayers and tax authorities by offering a fair and lenient approach to appeal filing. It also has the potential to reduce the burden on the legal system by facilitating more efficient resolution of disputes.
By streamlining the appeal process and minimizing the need for prolonged litigation, both taxpayers and the tax administration stand to benefit. Overall, this amnesty scheme provides a valuable opportunity for taxpayers to rectify their appeal filing shortcomings and contribute to a smoother and more cooperative tax environment.
