Taxpayers received a breather in November when the GST Council announced an amnesty extending the deadline for filing appeals until 31 January 2024.
The amnesty scheme aimed to streamline the appeal process against demand orders issued by tax inspectors. Approved at the 52nd council meeting in October, it targets rejected appeals due to late filing, missed deadlines, or late-filed appeals at the risk of rejection by the appellate authority.
Appeals must relate to orders passed on or before 31 March 2023. The amnesty scheme provides taxpayers more time to review and respond to assessment orders.
Individuals have a three-month window from the issuance of an assessment order to contest the tax demand, with an additional one-month extension under existing GST rules.
The amnesty initiative will benefit many taxpayers who could not file appeals within the previous timeframe, demonstrating the council’s commitment to making the GST system taxpayer-friendly.
Taxpayers wanting to avail of the amnesty scheme must pay an increased pre-deposit of 12.5% against 10% of the tax demand. Further, to ensure compliance and facilitate the appeal process, the amnesty scheme requires taxpayers to debit at least 2.5% of the tax under dispute out of the 12.5% pre-deposit.
The extension of the appeal deadline incentivises taxpayers to comply with tax regulations, providing additional time to address tax issues and explore potential remedies.
