Sabka Visbwas (Legacy Dispute Resolution) Scheme Rules, 2019 : Not to Miss offer by Government
By Union Budget 2019-20, the Hon’ble Finance Minister reported the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019.
The Scheme has now been advised and will be operationalized from first September 2019.
The Scheme would proceed till 31st December 2019. Government anticipates that the Scheme should be benefited by huge number of citizens for shutting their pending debates identifying with inheritance Service Tax and Central Excise cases that are currently subsumed under GST so they can concentrate on GST.
1) Objectives of the Scheme :
Its a One time measure for liquidation of past disputes of Central Excise and Service Tax
To provide an opportunity of voluntary disclosure to non-compliant taxpayers.
2) Key Points of the Notification are:
- Every declarant shall be required to file declaration under section 125 electronically at https://cbic-gst.gov.inin Form SVLDRS-1 on or before the 31st day of December,2019.
- Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 shall come into force from the 1st day of September, 2019.
- Every declarant shall be required to file separate declaration for each of the following case –
(a) a show cause notice, or one or more appeal arising out of such notice which is pending as on the 30th day of June, 2019; or
(b) an amount in arrears; or
(c) an enquiry or investigation or audit where the amount is quantified on or before the 30th day of June, 2019; or
(d) a voluntary disclosure.
3) SVLDR scheme Benefits
Total waiver of interest and penalty.
Immunity from prosecution
Cases pending in adjudication or appeal, a relief of 70% from the duty demand if it is Rs. 50 lakhs or less and 50% if it is more than Rs.50 lakhs.
The same relief for cases under investigation and audit where the duty involved is quantified on or before 30th June, 2019.
In case of an amount in arrears, the relief offered is 60% of the confirmed duty amount if the same is Rs. 50 lakhs or less and it is 40% in other cases.
In case of voluntary disclosure, the declarant will have to pay full amount of disclosed duty.
This is the only dispute resolution scheme which can offer waiver in the principal amount also. It’s a one time and life time offer which one should not miss.