GST Alert - 10 August 2019 | SKP
10 August 2019

CBIC issues clarifications on the Sabka Vishwas Scheme

The Central Board of Indirect Taxes and Customs (CBIC) has issued clarifications on the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (the Scheme) announced in the Union Budget 2019. The key clarifications have been captured in this alert.

Voluntary disclosure
It has been clarified that voluntary disclosures are eligible under the Scheme barring the specified exclusions mentioned in the Scheme. 

SCN covering multiple issues
In relation to declaration being filed under the Scheme in respect of a Show Cause Notice (SCN) covering multiple issues, all issues have to be covered under the declaration. Thus, the applicant cannot be selective about the issues/disputes covered in a SCN which he wishes to cover in his declaration under the Scheme.

Applicability of the Scheme to certain orders
The Scheme should not be applicable in cases where an adjudication order has been passed and received prior to 30 June 2019, but the appeal is filed on or after 1 July 2019.

Waiver of interest and penalty
In all the cases, total waiver of interest, penalty, and fine would be provided under the Scheme.

Refund under the Scheme
There would not be a refund of any amount paid under the Scheme. Further, in a case where pre-deposit or other deposit already paid exceeds the amount payable under the Scheme, the difference would not be refunded.

SKP's Comments

The clarifications issued should assist taxpayers to evaluate the applicability of the Scheme and the potential relief available to them. However, the clarification is silent on one of the key issues concerning taxpayers relating to refund of any amount paid ‘under protest’ where such protest payment exceeds the amount payable under the Scheme.
Urmi Axis | 7th Floor | Famous Studio Lane | Mahalaxmi | Mumbai | 400 011 | India
+91 22 6730 9000 | |
India | USA | UAE
This update contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this update, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this update.

© 2019 . All rights reserved.