Maharashtra VAT Amnesty Scheme for waiver of Tax, interest and Penalty: BJP CA Cell submits Proposal

Before the state government, the Maharashtra State Bharatiya Janata Party (BJP) Cell of Chartered Accountants (CA) submitted a Value Added Tax (VAT) scheme for the waiver of tax, interest, and penalty.

The State Budget for 2022–2023, which was unveiled on March 11, 2022, included a proposal from the government for an amnesty scheme for a number of taxes imposed before the Goods and Services Tax (GST) was implemented. It came into force on 1st April 2022.

The scheme did not include the crucial benefit of partial appeal withdrawal or unaided pending debts, with the exception of debts as per returns filed up to 31 March 2022, according to the proposal submitted.

According to the proposal, many qualified cases are pending appeal for the reasons listed below, making it impossible for them to benefit from the programme even though they would otherwise be eligible:

1. Large numbers of cases were decided ex parte during the lockdown times, which led to a significant increase in demand. The order was not physically served but rather Because they were unaware of it, the taxpayers are unable to make the appropriate appeals.
2. A 10% contribution was required to submit an appeal under the act, and the Bombay High Court’s Larger Bench was currently hearing arguments regarding the constitutionality of the provision. Only in July did the Supreme Court issue its ruling. This numerous appeals prevented them from being submitted and allowed them to benefit from the amnesty.
3. Since the lockdown, there are many cases still pending in the tribunal. The tribunal was inactive and few cases could be heard because no members were appointed. Even now, only two of the authorised seven technical personnel are available.
4. The department proposed the restructuring of the department to increase the number of officers to the Government long back, but still it was not approved. As a result thereof number of Appellate posts were vacant. Considering the number of appeals pending it was expected to fill the posts and create new posts for the disposal of appeals in the period of scheme so that a large number of deserved cases can take benefit of it. This is not done and is much required.
5. The appellate authorities are not hearing other taxpayer cases because the department occasionally sends orders to the appellate authorities to resolve the older cases first.
6. The same is true of the High Courts and SC, where many cases are still waiting and appeals hearings are not conducted due to a lack of regular benches.

According to the proposal, the government will profit since the extension of the MVAT amnesty scheme through July 31, 2023 will bring in significant financial benefits for the Maharashtra government.

Further it is estimated by the cell that the government will get 5000 crores from the extension of the MVAT amnesty scheme. Also mentioned that Taxpayers will be responsible for recovering the original MVAT dues, while the business community will profit from interest and penalties.

Likewise, considering the contexts, CA  Cell believes that it is relevant to extend the benefit of the scheme until 31 March 23, which will aid the department in resolving all outstanding VAT matters and give eligible individuals ample time and opportunity to take advantage of the scheme’s benefits.

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