Sabka Vishwas Legacy Dispute Resolution Scheme(SVLDRS), 2019 – Explain

SVLDRS Means

 

In the Indian Union Budget 2019-20, the Hon'ble Finance Minister reported the Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019. The Scheme has now been advised and will be operationalized from first September 2019. The Scheme would proceed till 31st December 2019. Government anticipates that the Scheme should be benefited by huge number of citizens for shutting their pending debates identifying with inheritance Service Tax and Central Excise cases that are currently subsumed under GST so they can concentrate on GST.

 

SVLDR scheme Benefits 

Total waiver of interest and penalty.

Immunity from prosecution

Cases pending in adjudication or appeal, a relief of 70% from the duty demand if it is Rs. 50 lakhs or less and 50% if it is more than Rs.50 lakhs.

The same relief for cases under investigation and audit where the duty involved is quantified on or before 30th June, 2019.

In case of an amount in arrears, the relief offered is 60% of the confirmed duty amount if the same is Rs. 50 lakhs or less and it is 40% in other cases.

In case of voluntary disclosure, the declarant will have to pay full amount of disclosed duty.

 

SVLDR scheme Objectives 

 One time measure for liquidation of past disputes of Central Excise and Service Tax

To provide an opportunity of voluntary disclosure to non-compliant taxpayers.

 

Cases covered under the SVLDR scheme

A show cause notice or appeals arising out of a show cause notice pending as on the 30th day of June, 2019.

An amount in arrears.

An enquiry, investigation or audit where the amount is quantified on or before the 30th day of June, 2019.

A voluntary disclosure.

 

Exclusions from the SVLDR scheme

Cases in respect of excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944 (this includes tobacco and specified petroleum products)

Cases for which the taxpayer has been convicted under the Central Excise Act, 1944 or the Finance Act, 1944

Cases involving erroneous refunds

Cases pending before the Settlement Commission.

 

 SVLDR scheme other features 

 Facility for adjustment of any deposits of duty already made

Settlement dues to be paid in cash electronically only and cannot be availed as input tax credit later

A full and final closure of the proceedings in question. The only exception is that in case of voluntary disclosure of liability, there is provision to reopen a false declaration within a period of one year

 Proceedings under the Scheme shall not treated as a precedent for past and future liabilities

Final decision to be communicated within 60 days of application

No final decision without an opportunity for personal hearing in case of any disagreement

Proceedings under the Scheme will be fully automated.

 

How to Apply for SVLDRS, 2019

The taxpayer can apply for this scheme from https://cbic-gst.gov.in

The taxpayer already registered under Central Excise or Service Tax can login and fill part- B of SVLDRS Form – 1.

The unregistered taxpayer can register himself by filling part-A of SVLDRS Form-1.

 

 

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