The Ministry of Finance, through a recent notification published in the Gazette of India, has provided a final chance for taxable persons to file belated or rejected appeals under the GST Amnesty Scheme. The notification, numbered 53/2023–CENTRAL TAX, dated 2nd November 2023, outlines the special procedure for those who failed to file appeals within the stipulated time.
The scheme, introduced under Section 148 of the Central Goods and Services Tax Act, 2017, targets taxpayers who were unable to appeal against orders issued by the proper officer on or before 31st March 2023 under Sections 73 or 74 of the Central Goods and Services Tax Act, 2017. Additionally, it covers cases where appeals were rejected solely due to not being filed within the specified time frame contemplated under Section 107 of the Central Goods and Services Tax Act.
Highlights of the Amnesty Scheme
Deadline Extension
Taxpayers falling under the specified criteria are granted an extension until 31st January 2024 to file their appeals. The appeals must be submitted using FORM GST APL-01 in accordance with section 107(1) of the GST Act.
Conditions for Filing Appeals
Taxpayers must pay the admitted amount of tax, interest, fine, fee and penalty in full. Further, a sum equal to 12.5% of the remaining disputed tax amount, subject to a maximum of twenty five crore rupees, must be paid as pre-deposit for filing the appeal. Out of this, at least twenty percent should be debited from the Electronic Cash Ledger. Taxpayers should understand the importance of debiting at least twenty percent of the remaining disputed tax amount from the Electronic Cash Ledger. This is a crucial step in compliance with the scheme’s requirements. To ensure appeals are admissible, taxpayers must meet these specific conditions. The “admitted amount” should cover tax, interest, fine, fee, and penalty.
The appeals that are pending before the Appellate Authority before the scheme’s issuance will be deemed filed in accordance with the new notification if they fulfill specified conditions.
No Refunds Until Appeal Disposal
No refunds will be granted until the appeal is disposed of. Any amount paid in excess of the specified amount before the issuance of this notification will not be eligible for a refund.
Exclusion of Non-Tax Demands
Appeals under this scheme are not applicable to demands not involving tax.
It is essential to note that this exclusion specifically extends to cases where the demand solely comprises interest and penalty, with no underlying tax liability. Taxpayers are advised that the GST Amnesty Scheme does not encompass appeals where the sole contention pertains to interest and penalty without any associated demand under the tax head.
Application of GST Rules
The provisions of Chapter XIII of the Central Goods and Service Tax Rules, 2017, will apply mutatis mutandis to all the appeals filed under this notification.
Actionable Information for Taxpayers
The Ministry of Finance emphasises that this Amnesty Scheme provides a final opportunity for taxpayers who missed the initial appeal filing deadline. Taxpayers are urged to ensure compliance with the conditions outlined in the notification to avoid any complications in the appeal process. It is crucial to note that the last date for filing belated or rejected appeals under this amnesty scheme is 31st January 2024.
The GST authorities have undertaken public awareness initiatives to raise awareness about the GST Amnesty Scheme, including outreach programs and informative materials designed to assist taxpayers.
Conclusion
The GST Amnesty Scheme serves as a lifeline for taxpayers facing challenges in filing appeals within the prescribed timeframe or whose appeals were rejected solely on the reason of delay. With the extended deadline until 31st January 2024, taxpayers are encouraged to take advantage of this final opportunity to file missed appeals and rectify their appeal status. The Ministry of Finance assures that all appeals filed under this Scheme will be processed as per the guidelines, providing a fair chance for taxpayers to address their concerns.
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