The Sabka Vishwas Legacy Dispute Scheme 2019 was introduced to resolve all disputes relating to the former service and central excise tax which are subsumed under GST. This scheme was introduced for taxpayers who wish to close their previous pending disputes.
This scheme has been notified to come into force on the 1st of September 2019 and will be operational till 31st December 2019.
The 26 enactment scheme to which the Sabka Vishwas Scheme implies includes:
- The Agricultural Produce Cess Act,1940;
- The Coffee Act, 1942;
- The Rubber Act, 1947;
- The Mica Mines Labour Welfare Fund Act, 1946;
- The Medicinal and Toilet Preparations (Excise Duties) Act, 1955;
- The Salt Cess Act, 1953;
- The Mineral Products (Additional Duties of Excise and Customs) Act, 1958;
- The Additional Duties of Excise (Goods of Special Importance) Act, 1957;
- The Sugar (Special Excise Duty) Act, 1959;
- The Produce Cess Act, 1966;
- The Textiles Committee Act, 1963;
- The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972;
- The Coal Mines (Conservation and Development) Act, 1974;
- The Tobacco Cess Act, 1975;
- The Oil Industry (Development) Act, 1974;
- The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976;
- The Bidi Workers Welfare Cess Act, 1976;
- The Sugar Cess Act, 1982;
- The Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;
- The Jute Manufacturers Cess Act, 1983;
- The Agricultural and Processed Food Products Export Cess Act, 1985;
- The Spices Cess Act, 1986;
- The Finance Act, 2007;
- The Finance Act, 2004;
- The Finance Act, 2015;
- The Finance Act, 2016;
Benefits of the Scheme
- Taxpayers have been allowed to pay the outstanding tax amount and free from the consequences that are imposed on them under the law.
- Interest, penalties and fines have been waived off by the taxpayers.
- Complete amnesty from prosecution proceedings.
Relief provided under this scheme
A substantial relief margin ranging from 40% to 70% on all duty demands has been provided by the scheme. However, this is not applicable in the case of voluntary disclosure.
Function of the scheme
- Filing of a declaration under section 125 needs to be done electronically on https://cbic-gst.gov.in on or before 31st of December 2019 Form SVLDRS-1. Separate declaration filing needs to be done for each case that has to be resolved.
- A unique reference number is generated automatically by the system on receiving the receipt of the declaration.
- A verification of the declaration is done based on the particulars furnished by the declarant, and on the records that are already available with the department. There are no verifications done for voluntary disclosure.
- A statement will be issued by the designated committee within 60 days from the date of receipt of declaration in Form SVLDRS-3, with the particulars of the amount payable. If the amount payable is nil, and there is no appeal pending in either a High Court or the Supreme Court, then this statement will not be issued.
- If the estimated amount payable is more than what has been declared, the committee needs to issue an estimate of the amount payable Form SVLDRS-2 within 30 days of the receipt of the declaration. This includes an opportunity for personal hearing.
- Form SVLDRS-2A needs to be filed and indicated if the declarant wishes to agree or disagree with the estimate calculated by the designated committee to make any written submission, to waive the personal hearing, or to seek an adjournment.
- The committee has the power to make decisions based on the records available if the above form has not been filed, or if the declarant does not appear before the designated committee on the appointed date.
6. The designated committee can issue a revised Form SVLDRS-3 provided
- The modification has to be done within 30 days of issue of the original Form SVLDRS-3.
- Only corrections of arithmetical or clerical errors which are apparent on the face of records can be made.
7. The amount indicated on the Form SVLDRS-3 has to be paid by the declarant within 30 days from the date of issue.
8. Once the declarant has made the payment in full, a discharge certificate will be issued in Form SVLDRS-4 within 30 days of payment.
This blog gives you clarity of why the Sabka Vishwas Scheme was introduced and also the forms that need to be filed for the same. This is an opportunity for taxpayers who need to pay outstanding tax amounts and free themselves from any consequence under the law.