GST Amnesty Scheme: Significant Relief Declared for Taxpayers at 52nd GST Council Meeting

The GST Council introduced an amnesty program on Saturday, permitting taxpayers to challenge demand orders issued by tax inspectors until January 31, 2024, for orders issued up to March 2023. According to GST regulations, a taxpayer has three months from the issuance of an assessment order by the tax officer to file an appeal against it.

This deadline can be extended by an additional month. During its meeting on Saturday, the 52nd GST Council extended the deadline for GST-registered businesses to file appeals, requiring an increased pre-deposit of 12.5 percent of the tax demand, up from the current 10 percent.

Following the Council meeting, Revenue Secretary Sanjay Malhotra held a press conference and explained that the council has proposed giving taxpayers an extended period until January 31, 2024, to file appeals for all orders issued up to March 31, 2023. To initiate the appeal process, taxpayers will be required to make a pre-deposit of 12.5 percent of the disputed tax amount.

Additionally, the Electronic Cash Ledger should be debited with a minimum of 20 percent or 2.5 percent of the disputed tax amount, depending on the case, when making this pre-deposit.

This change will help many taxpayers who were unable to file appeals within the previous time limit," a government statement said.

The GST Council has made amendments to the GST laws to specify that assets that are temporarily seized will be returned after one year, aiming to streamline trade.

Under the GST regulations, tax authorities can temporarily confiscate the assets, including bank accounts, of GST-registered businesses. With this clarification from the council, such attachments will only remain valid for one year.

Also Read: GST Council Clears The Way For Indian Rupee Trade By Removing Tax Barriers