The 52nd GST Council meeting brought forth a significant recommendation—an Amnesty Scheme for filing appeals against demand orders in cases where the appeal could not be filed within the allowable time. While this proposal offers relief to many taxpayers, it’s essential to analyze its limitations and shortcomings to better understand its implications.

Amnesty Scheme for filing of appeals against demand orders in cases where appeal could not be filed within the allowable time: –

A major relief in 52nd GST Council meeting: The Council has recommended providing an amnesty scheme through a special procedure under section 148 of CGST Act, 2017 for taxable persons, who could not file an appeal under section 107 of the said Act, against the demand order under section 73 or 74 of CGST Act, 2017 passed on or before the 31st day of March, 2023, or whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in sub-section (1) of section 107.

In all such cases, filing of appeal by the taxpayers will be allowed against such orders upto 31st January 2024, subject to the condition of payment of an amount of pre-deposit of 12.5% 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. This will facilitate a large number of taxpayers, who could not file appeal in the past within the specified time period.

Under the present GST statute, an assessment has three months from the day a tax officer issues an assessment order asking taxpayers to file an appeal against the order. This deadline might be extended by one more month in exceptional cases. Nevertheless, given the current developments and the difficulties taxpayers face alot of difficult economic conditions, this deadline has been greatly extended.

Overall, it is expected that the GST Council’s ruling will benefit many taxpayers who were previously unable to file an appeal within the first three-month period. It provides them with the much-needed scope and flexibility they require in the face of ongoing financial challenges. The action further demonstrates the government’s dedication to improving the accessibility and friendliness of the tax system for taxpayers.

Positions will be cleared once relevant notifications are issued.

“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship.

The information on this site is not intended to be a substitute for professional advice.”