Important Update on the GST Amnesty Scheme

GST Amnesty Scheme: Taxpayers Can File Appeals Until January 2024 for Demands Raised by Tax Officers Until March 2023. The GST Council introduced an amnesty scheme, allowing taxpayers to file appeals against demand orders issued by tax officers until March 2023, with a deadline of January 31, 2024.

According to GST law, when a taxpayer receives an assessment order for taxes, they usually have 3 months to file an appeal. However, this period can be extended by an additional month.

However, during the 52nd GST Council meeting on Saturday, it was decided to provide GST-registered businesses with more time to file appeals. They can now do so, but they are required to make a higher pre-deposit of 12.5% of the tax amount demanded, compared to the previous 10%.

Following the Council meeting, Revenue Secretary Sanjay Malhotra informed reporters that the council has recommended extending the deadline for taxpayers to file appeals until January 31, 2024. This extension applies to all orders issued by tax authorities until March 31, 2023. Taxpayers, however, must make an enhanced pre-deposit of 12.5% of the disputed tax amount.

Regarding this pre-deposit, at least 20% (which equals 2.5% of the disputed tax) should be paid from the Electronic Cash Ledger. This change aims to help many taxpayers who could not file appeals within the previous time limits.

In another move to simplify trade procedures, the GST Council has updated the GST rules. These updates state that property provisionally attached by tax officers will be released after one year. Under GST law, tax officers can provisionally attach properties, including bank accounts, of GST-registered businesses in cases of unpaid taxes.

The council has made it clear that the attachment of properties will remain valid for one year. This change will simplify the process of releasing provisionally attached properties. 

After one year, these properties can be released without the need for a separate written order from the Commissioner, as stated in the official statement.

There have been cases where GST orders were uploaded on the portal, but businesses were unaware of them. As a result, the three-month time limit for taking action had passed. 

This situation was causing difficulties for taxpayers. The new rule will be beneficial for businesses, reducing the need for writ petitions related to such cases.

Also Read: Key Highlights Points From The 52nd GST Council Meeting