AMNESTY SCHEME UNDER GST

 

The Goods and Services Tax Act, 2017 came into force with effect from 1.7.2017 in India.

 

So far the taxpayers are not able to file appeals before any appellate authorities as the same has not been formed.

 

The GST Council in its 52nd Meeting held on October 07, 2023, to facilitate a large number of taxpayers who could not file the appeal in the past within the specified time period, interalia recommended providing an amnesty scheme through special procedure under Section 148 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for taxable person, who could not file an appeal under Section 107 of the CGST Act, against the demand order issued under Section 73 or 74 of the CGST Act passed on or before March 31, 2023 or appeal against the said order was rejected solely on the ground that the appeal was not filed within the time period under Section 107(1) of the CGST Act.

 

In all such cases, filing of appeal by the taxpayers will be allowed against such orders up to January 31, 2024, subject to the condition of payment of an amount of pre-deposit of 12.5 percent of the tax under dispute out of which at least 20% (i.e., 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger.

 

The CBIC vide Notification No. 53/2023-Central Tax dated November 02, 2023, has provided procedure under Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time period wherein the said person shall file an appeal against the said order in FORM GST APL-01 in accordance with subsection (1) of Section 107 of the CGST Act, on or before January 31, 2024.

 

Provided that an appeal against the said order filed in accordance with the provisions of Section 107 of the CGST Act, and pending before the Appellate Authority before the issuance of this notification, shall be deemed to have been filed in accordance with this notification.

 

No appeal shall be filed under this notification, unless the appellant has paid-

a). in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

b). a sum equal to twelve and a half percent of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed, out of which at least twenty percent should have been paid by debiting from the Electronic Cash Ledger.

 

Further, no refund shall be granted on account of the notification till the disposal of the appeal, in respect of any amount paid by the appellant, either on their own or on the directions of any authority (or) court, in excess of the amount specified above before the issuance of this notification, for filing an appeal under Section 107(1) of the CGST Act.

 

However, the appeal under the notification shall not be admissible in where demand does not involve tax, for example:

 

i. Where the order has been passed on or after March 31, 2023

ii. An order where there is no demand of tax involved.

iii. An order only for a penalty.

iv. An order only for interest.

v. An order for rejection of refund.

vi. Cases of cancellation of registration.

The provisions of Chapter XIII of the CGST Act, shall mutatis mutandis, apply to an appeal filed under this notification.

 

The relevant Notification is given below for ready reference.

 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (ii)] 

GOVERNMENT OF INDIA 

MINISTRY OF FINANCE 

(DEPARTMENT OF REVENUE) 

CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS 

NOTIFICATION 

No. 53/2023– CENTRAL TAX 

New Delhi, dated the 2nd November, 2023 

S.O....(E).— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies taxable persons who could not file an appeal against the order passed by the proper officer on or before the 31st day of March, 2023 under section 73 or 74 of the said Act (hereinafter referred to as the said order), within the time period specified in sub-section (1) of section 107 read with sub-section (4) of section 107 of the said Act, and the taxable persons whose appeal against the said order was rejected solely on the grounds that the 

said appeal was not filed within the time period specified in section 107, as the class of persons (hereinafter referred to as the said person) who shall follow the following special procedure for filing appeals in such cases: 

2. The said person shall file an appeal against the said order in FORM GST APL-01 in accordance with subsection (1) of Section 107 of the said Act, on or before 31st day of January 2024: 

Provided that an appeal against the said order filed in accordance with the provisions of section 107 of the said Act, and pending before the Appellate Authority before the issuance of this notification, shall be deemed to have been filed in accordance with this notification, if it fulfills the condition specified at para 3 below. 

3. No appeal shall be filed under this notification, unless the appellant has paid- 

(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and 

(b) a sum equal to twelve and a half per cent. of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has 

been filed, out of which at least twenty percent should have been paid by debiting from the Electronic Cash Ledger. 

4. No refund shall be granted on account of this notification till the disposal of the appeal, in respect of any amount paid by the appellant, either on their own or on the directions of any authority (or) court, in excess of the 

amount specified in para 3 of this notification before the issuance of this notification, for filing an appeal under subsection (1) of Section 107 of the said Act. 

5. No appeal under this notification shall be admissible in respect of a demand not involving tax. 

6. The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017 (12 of 2017), shall mutatis mutandis, apply to an appeal filed under this notification. 

[F. No.CBIC-20001/10/2023-GST] 

(Raghavendra Pal Singh) 

Director