GST Appeal Amnesty Scheme 2023

GST Appeal Amnesty Scheme 2023

News: In its 52nd meeting, the GST Council introduced the concept of the GST Amnesty Scheme 2023, which would allow taxpayers to contest demand orders issued by tax inspectors until January 31, 2024.

About:
• The GST Appeal Amnesty Scheme 2023 is a significant development introduced by the Central Board of Indirect Taxes and Customs (CBIC). This scheme provides taxpayers with a second chance to file appeals against demand orders, offering relief to those who missed the initial deadlines for appeal submission.

Key points:
• Eligibility: The scheme is open to taxpayers who were unable to file an appeal against an order issued on or before March 31, 2023, under section 73 or 74 of the GST Act. It also covers taxpayers whose appeals were rejected solely on the grounds of missing the appeal submission deadline.
• Conditions for filing appeal: Appeals will be entertained only from appellants who have made full payments of all their tax liabilities, including taxes, interest, fines, fees, and penalties. To initiate an appeal under the scheme, a deposit is mandatory. Taxpayers are required to deposit 12.5% of the remaining disputed tax amount. The maximum deposit allowed is Rs. 25 crore.
• Refund Provisions: If taxpayers have made an excess payment while initiating an appeal, they should be aware that refunds will only be processed once the appeal is decided.
• Deadline: The scheme will be open until January 31, 2024.
• Efficiency and Transparency: The changes introduced by the GST Council contribute to enhancing transparency and fairness in the GST system. The amendments streamline procedures related to appeals and property attachments, ultimately fostering a more efficient and taxpayer-friendly GST regime.
• This move aims to simplify and streamline the appeal process for individuals and entities affected by GST authorities’ decisions or orders.