GST UPDATE ON THIRD CLARIFICATION ISSUED FOR SABKA VISHWAS SCHEME:-

The much awaited amnesty scheme for reducing the pending litigation in Central Excise and Service Tax Laws, Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 has been implemented from 1^st September, 2019. As the scheme is new, there are lot of confusions and doubts in the minds of assessee regarding the applicability of the scheme and this is evidenced from the fact that the government has already issued two clarifications to address various confusions prevalent in the minds of assessees planning to opt for the amnesty scheme. We have already carried our extensive series of updates on this amnesty scheme and on the clarifications issued by the earlier circulars issued by the government. The present update seeks to highlight another set of important clarifications issued by the government vide Circular No. 1073/06/2019-CX dated 29.10.2019.

Issuance of Final Audit Report is to be considered under situation of audit pending :-It has been brought to the notice that some officers are taking an interpretation that if Final Audit Report (FAR) has been issued on or before 30.06.2019 and no show cause notice has been issued, it cannot be said that audit is pending and the benefit of scheme is not available. It has been clarified that the benefit under this scheme is available even in such cases as till such time an audit does not culminate in a show cause notice, it is to be treated as pending.
Case where assessee has paid entire tax in return filed is also eligible to file declaration under this scheme for waiver of interest liability:-A doubt has also been raised that whether a party who has filed an ST-3 return and has also paid the dues in full before filing the application but still wants to avail the benefits of the scheme for interest on the late paid dues is eligible. It is clarified that such cases are also covered under scheme as they are arrears of tax liability admitted under returns filed on or before 30.06.2019.
Option to file single declaration for multiple returns:-It was clarified in earlier circular that separate declaration will be needed for each return filed. However, for the sake of administrative convenience, it is clarified that a single declaration can be filed for multiple returns but this will not have any impact on the quantum of tax relief applicable for each return individually. It is clarified that single estimate/statement and discharge certificate shall be issued for a declaration.
Asset Reconstruction Company (ARC) also eligible for filing declaration under this scheme:-In many cases, the assets of a tax defaulter are taken over by an Asset Reconstruction Company (ARC) and the department asks the ARCs to pay the outstanding dues. It is clarified that such persons are allowed to file declaration under this scheme and avail the benefits.
Benefit available event to appeals filed after 30.06.2019:-As stated in our earlier update that there is no clarity as regards admissibility of benefit under this scheme in cases where appeals were filed after 30.06.2019. However, in the earlier circular it was clarified that the assessee has option whether to file appeal against the order passed after 30.06.2019 or to avail benefit under this amnesty scheme. It was clarified that the assessee may avail benefit under this scheme by giving undertaking that they would not file appeal against the order and intend to avail benefit of scheme. But still there was doubt regarding admissibility of benefit where appeals were filed after 30.06.2019. This circular clarifies that if taxpayer withdraws the appeal and furnishes the undertaking to the department, then benefit under this scheme can be availed by filing declaration under the scheme. This is clarification is highly appreciated and welcomed by the trade and industry as it truly supports the intention of the scheme to reduce the baggage of past litigation.

The content of this GST update is for educational purpose only and not intended for solicitation.
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GST UPDATE ON THIRD CLARIFICATION ISSUED FOR SABKA VISHWAS SCHEME:-

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