CBIC notifies Amnesty Scheme for condoning delay in filing appeals under GST Law

Background:

Earlier, the GST Council in its 52nd Meeting held on October 07, 2023, to facilitate a large number of taxpayers who could not file the appeal in the past within the specified time period, interalia recommended providing an amnesty scheme through special procedure under Section 148 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) for taxable person, who could not file an appeal under Section 107 of the CGST Act, against the demand order issued under Section 73 or 74 of the CGST Act passed on or before March 31, 2023 or appeal against the said order was rejected solely on the ground that the appeal was not filed within the time period under Section 107(1) of the CGST Act. In all such cases, filing of appeal by the taxpayers will be allowed against such orders up to January 31, 2024, subject to the condition of payment of an amount of pre-deposit of 12.5 percent of the tax under dispute out of which at least 20% (i.e., 2.5% of the tax under dispute) should be debited from Electronic Cash Ledger.

Notification:

Now, the CBIC vide Notification No. 53/2023-Central Tax dated November 02, 2023, has provided procedure under Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time period wherein the said person shall file an appeal against the said order in FORM GST APL-01 in accordance with subsection (1) of Section 107 of the CGST Act, on or before January 31, 2024.

Provided that an appeal against the said order filed in accordance with the provisions of Section 107 of the CGST Act, and pending before the Appellate Authority before the issuance of this notification, shall be deemed to have been filed in accordance with this notification.

No appeal shall be filed under this notification, unless the appellant has paid-

a). in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and

b). a sum equal to twelve and a half percent of the remaining amount of tax in dispute arising from the said order, subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed, out of which at least twenty percent should have been paid by debiting from the Electronic Cash Ledger.

Further, no refund shall be granted on account of the notification till the disposal of the appeal, in respect of any amount paid by the appellant, either on their own or on the directions of any authority (or) court, in excess of the amount specified above before the issuance of this notification, for filing an appeal under Section 107(1) of the CGST Act.

However, the appeal under the notification shall not be admissible in where demand does not involve tax, for example:

i. Where the order has been passed on or after March 31, 2023

ii. An order where there is no demand of tax involved.

iii. An order only for a penalty.

iv. An order only for interest.

v. An order for rejection of refund.

vi. Cases of cancellation of registration.

The provisions of Chapter XIII of the CGST Act, shall mutatis mutandis, apply to an appeal filed under this notification.

Conclusion:

The Notification introduces an amnesty scheme for appeal filing, aiming to provide relief to eligible taxpayers. Taxpayers must fulfill the qualifications required, meet the stipulated conditions, and be informed about the specific types of orders that do not qualify for this amnesty. This notification offers a chance for taxpayers to rectify past appeal filing problems, and adhering to its provisions is crucial for accessing the benefits of the amnesty program.

To know more watch our video on “GST Amnesty Scheme for Filing of Appeals is now LIVE” || CA (Adv) Bimal Jain at: https://www.youtube.com/watch?v=BsaZ4PfbKWw

The Notification can be accessed at: https://www.a2ztaxcorp.com/wp-content/uploads/2023/11/Amnesty-Scheme-for-Condonation-of-delay-in-filling-Appeal-1.pdf

(Author can be reached at info@a2ztaxcorp.com)

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