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Kerala implements Amnesty Scheme to settle Pre-GST Arrears [Read Circular]

Amnesty Scheme - GST Arrears - Tax Arrears - Taxscan

In a bid to reduce litigations and to recover the arrears after the GST rollout, the Kerala Government has implemented the Amnesty scheme for the assessees under the earlier VAT, Kerala General Sales Tax Act and other taxes enabling them to settle the tax disputes by waiving interest and penalty.

Under the scheme, all arrears under the Kerala General Sales Tax Act, 1963 relating to the period up to 31-03-2018, all arrears under the Kerala Value Added Tax Act, 2003 relating to the period up to 30-06-2017, all arrears under the Central Sales Tax Act, 1956 relating to the period up to 30-06-2017, all arrears under the Kerala Tax on Luxuries Act, 1976 relating to the period up to 30-06-2017, all arrears under the Kerala Surcharge on Taxes Act, 1957 relating to the period up to 30-06-2017, all arrears under the Kerala Agricultural Income Tax Act, 1991 for the period up to 31-03-2017, can be settled.

As per the scheme, the assessees who opt for the scheme need only to pay the principal amount in full. Entire interest and penalty shall be waived. In the case of arrears under Kerala General Sales Tax from 01.04.2005 to 31.03.2018 principal and interest shall be paid. Penalty shall be waived.

“The assessees who opt for the scheme shall submit an application before the assessing authority on or before 30-09-2019 in the prescribed form in Annexure -1. In the case of demands newly generated or modified after 30-09-2019, the option shall be filed within 30 days from the date of receipt of the order. 5. Since the amnesty scheme provides for outright settlement of arrears, the assessee who opts for the scheme shall withdraw all the cases pending before any appellate or revisional authority, tribunal or courts unconditionally. The assessing authority shall confirm that such cases are formally withdrawn within 60 days, and in case such witdrawal has not been effected, the permission given under this scheme shall be revoked after giving notice to the assessee. The cases in which appeals filed by the State, however, shall be continued and hence the assessee shall not be eligible for availing provisions of this scheme,” the circular said.

To Read the full text of the Circular CLICK HERE
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