Amnesty Scheme Launched by Kerala Govt to Settle Pre-GST Tax Arrears

The Government of Kerala has launched an Amnesty Scheme 2020 to settle the liabilities of the tax arrears arising during Pre GST (Goods and Services Tax). The government has introduced the scheme for the purpose of settlement of tax liabilities of arrear assessees before the introduction of GST to clear the backlog of taxes.

The amnesty scheme will prove to be beneficial for both the taxpayers and the government as it will help in the settlement of the tax liabilities of the arrear assesses before the new indirect tax was introduced These types of taxes paid on Consumption by the consumer but they do not pay directly to the government (unlike income tax). For example, GST, Sales Tax, VAT, Custom Duty and Octroi Tax. Read More and will help in generating revenue for the government. The taxes that we’re unable to settle during the previous amnesty scheme will be aimed under the new one.

The New Amnesty Scheme 2020 will be applicable for the collection of arrears in payments under Kerala Agricultural Income Tax, Kerala Value Added Tax, Central Sales Tax, Luxury Tax, Kerala Surcharges, and Kerala General Sales Tax. date of submission will be used to calculate the arrears for the settlement of the tax liability due from them. The taxpayers who will opt for this scheme will settle all the dues on the date of option altogether.

The government has not provided an option to the assessee for any partial payments under the scheme. The assessee is required to provide a demand notice for the payments of tax liabilities for the GST period. The taxpayers who had opted for the older Amnesty Scheme can also opt for the new one if they were unable to pay the taxes under the old one. Such assessments will be paid credit, if any, arising from the previous scheme. The interest arising and any other outstanding penalties will be waived under this option. The amounts liable under the new scheme will be calculated after the deduction of payments made under the old scheme.

Read Also: Tax Dispute Settlement Scheme (Vivad se Vishwas Bill) Know about the tax dispute settlement scheme (Vivad se Vishwas Bill) under the IT act. Under this scheme, taxpayers can settle all disputes before the end of 31st March 2020

The arrears under Kerala General Sales Tax Act will be required to pay the dues under the new act only if the liability is arising during the period before 1st April 2005. The areas for the later period till now will be required to pay principal amount and interest for the period. The penalties arising will be waived fully.

The assessees are informed that they will not be provided any credit for the penalties and interest already paid by them. But, if the amount of penalty is not liable to be utilised, then it will be used to settle the amounts related to penalty arising under the new scheme.

If the assessee, under the arrear of the revenue recovery process, opts for New Amnesty Scheme 2020 The Indian government is planning to launch a new scheme for GST returns non-filers and nil filers, called Amnesty Scheme. Get more details via this article. Read More then he will be required to withdraw the revenue recovery proceedings if he pays any previous dues under the scheme. The assessee under such cases will not be provided any payment under collection charges. The assessee can withdraw the revenue recovery proceedings only if he has made the payment for the dues in full under the scheme. The amount of revenue recovery proceedings will be kept with the department if he pays the liability under the scheme in installments and will be repaid according to the installments made by him till the final payment is complete. The amount under the revenue recovery will be kept in abeyance in RR ONLINE portal.

The assessees who will opt the new amnesty scheme will be able to withdraw all the pending cases ongoing before any kind of appellate authority, tribunal, revisional authority, or courts and will have to file a declaration regarding the same online. The scheme can be opted by the assessee based on the demand according to the assessment order issued in the original if the case is filed by the state as on the date of the option. No withdrawal or refund or adjustment can be made for the payment settled under the New Amnesty Scheme. No such provisions are present for any assessee under the scheme.

Features of the New Amnesty Scheme 2020:

• Interest and penalties can be waived to up to 100%
• If the assessee pays the amount of due in a lump sum, then he can enjoy the benefits of up to 60% waiver on the balance dues
• If the assessee pays the amount of due in installments, then he can enjoy the benefits of up to 50% waiver on the balance dues
• The new amnesty scheme can be availed by all the assessments for all kinds of pending cases in all the tribunals. (Except those under KGST after the year 2005)
• The last date to avail the benefits of the new scheme is 31st July 2020
• The last date to make the payments under the new scheme is 31st December 2020
• The due credit will be provided to the assessee for the payment of taxes or interest after the demand notice is received
• The assesses who had opted for the old scheme can also opt for the new scheme if the payments were not made under the old one.
• Due credit will be provided to all the assessees who had made any payments under the old scheme
• Due credit will be provided to such assessees who have paid tax for the compounded offenses
• Refunds of any kind will not be provided to any assessee.