Rajasthan Govt. issues clarification on VAT Amnesty Scheme, 2021 [Read Circular]

VAT Amnesty Scheme - Rajasthan Govt - VAT - Taxscan

The Rajasthan Government issued the clarification on the VAT Amnesty Scheme, 2021. The government clarified that outstanding demands or disputed amounts that pertain to regular assessment and its escaped assessment, if any, and are not related to evasion cases. Here the penalty, if any, as mentioned in column 4 of Table A, implies a penalty other than the penalty imposed for evasion/avoidance of tax.

“Such outstanding demands cover those created for non-submission of declaration forms or certificate prescribed for concessional rate or nil rate of tax under the RST Act, VAT Act or CST Act and also include those pertaining to Form VAT-15, VAT-72 but excluding those pertaining to Form VAT-41 or Exemption Certificate. Here the penalty, if any, as mentioned in column 4 of Table-A, implies penalty other than the penalty evasion/avoidance of tax,” the Government clarified.

Outstanding demands or disputed amount pertaining to cases of evasion/avoidance of tax made out either on grounds of dispute regarding the rate of tax or classification of goods or interpretation of Act, where goods have been truly disclosed in the returns and/or books of accounts and do not fall under Clause 10 of explanations given under the Scheme, irrespective of penalty imposed or not.

Outstanding demand or disputed amount pertaining to evasion or avoidance of tax which has arisen due to various reasons.

Firstly, concealment of any transactions of sale or purchase from his accounts, registers or documents required to be maintained by the dealer and in the return(s) furnished.

Secondly, fraudulent or misrepresentation of facts made in the returns and/or books of accounts by the dealer.

Thirdly, failed to get himself registered under the Act and has avoided tax.

Fourthly, cases where ITC is availed on the basis of false or forged VAT invoices.

Fifthly, unaccounted goods, and bogus declaration forms submitted for availing concessional benefit.

Lastly, misuse of declaration form(s) or Certificate(s); and cases related to Goods or vehicles in transit.

“Where the outstanding demand or dispute includes an amount partly pertaining to the goods included in the entry number 54 of the Schedule-VII of the Constitution and partly to other goods not covered by the said entry, will be eligible for the benefits under the Scheme only to the extent of amount of demand dispute related to goods not covered under entry number 54 of the Schedule-VII of the Constitution,” the Government said.

The government added that where any amount has been deposited or recovered, including the amount deposited for filing of an appeal, prior to February 24, 2021, it shall be adjusted as per Clause 2 under explanation(s) of Amnesty Scheme-2021 against the created demand. The benefits of the Scheme shall be available only for the balance of outstanding demand as per the provisions of the Scheme.

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