Sabka Vishwas Scheme: A never before opportunity
| Date :13-Oct-2019 |
By Sanjay Rathi :
In a determined bid to dent the huge body of litigation in indirect taxes, SVLDRS-2019 has been launched by the Union Ministry of Finance with effect from September 1, 2019. The scheme aims to give the erstwhile Central Excise & Service Tax assessees a one time opportunity to wipe their slate clean by settling their outstanding litigation & dues. About Rs 4 lakh crore worth of revenue is stuck up in Central Excise & Service tax litigation at various levels and in the normal course will take years to settle. An unbiased look at the provisions of the scheme will make it obvious that it is without doubt the best ever scheme of its type. SVLDRS-2019 is a much improved avatar since it allows waiver of as much as 70 per cent of the main tax dues, in addition to full waiver of fine, penalty, interest and prosecution. Quitclaim of as much as 70 per cent of tax dues! I don’t think it can ever get any better than this! This extent of waiver is the singular most important USP of the Scheme.
70 per cent is truly unprecedented and unbelievable! Added to the unparalleled waiver is the fact that the scheme applies to all types of disputes an assessee could possibly have with the department. Any assessee in dispute with the department at any level, be it Commissioner (Appeals), Tribunal, High Court or Supreme Court, is eligible to take benefit of the scheme. Declaration can also be filed with respect to a Show Cause Notice issued which is yet to be adjudicated and even with respect to recent investigations/audit undertaken by the department.
Even cases of unpaid arrears will be entertained. Last but not the least, an assessee can make a voluntary disclosure as well and the same will be accepted on face value with no questions being asked. Thus practically all types of disputes are covered under the scheme and it is this breadth and all inclusive nature that gives the scheme its second USP. Yet another unique facet of the scheme is that it is completely faceless. All actions by a declarant viz filing of declaration, payment of dues as well as all communications with the department are totally online.
There is no requirement for a declarant to meet any departmental officer and this rules out any chances of harassment and/or complaints. The next facet of the scheme which makes it absolutely irresistible is its simplicity and the ease of application. Anybody desirous of filing a declaration under the scheme has to simply log into the website http://www.cbic-gst.gov.in and file it by following lucidly clearly explained steps. Even the calculation of the amounts due to be paid by the declarant is done by the website itself and the relevant columns get auto populated. A not to be forgotten aspect of the Scheme is that the filed declaration gets attended to at very high levels in the department. The Designated Committees empowered to process the declarations comprise of officers of at least in the rank of an Assistant Commissioner and therefore the declaration filed would get the most careful dealing. SVLDRS is fundamentally different from its previous avatars.
Yet another aspect of the scheme that renders it absolutely flawless is its time bound nature. All processes once the declaration has been filed are by law stipulated to be concluded in preset time frames. A declarant will receive his discharge certificate in a maximum of four months from the date of filing of declaration, there is no question of any interminable wait. The onus is now on the trade, industry and business to respond to and benefit from such an attractive scheme laced with so many never before features. The fact that the scheme offers waiver of as much as 70 per cent tax dues means that the declarant has to pay only 30 per cent and this makes it an absolutely out the world offer.
By paying mere 30 per cent an assessee gets a complete settlement with total write-off of fine, penalty, interest and prosecution. Assessees still hesistant to seek recourse to settlement under this scheme would be well advised to consider the hidden cost of protracted litigation which over the years might add up to more than 30% of the dues involved. It makes perfect business sense to settle the issue one and for all, the merits notwithstanding, and to make financial statements clean. Also note worthy is the peace of mind which would follow once you get the discharge certificate. This is especially true for smaller assessees with small amounts caught up in the litigation web. The department on its part is pulling out all the stops to publicize the scheme and its features.
The field formations, in partnership with the trade and industry bodies are holding workshops, symposia, open houses & clinics across the country. Advertisements detailing the features of the Scheme are being regularly placed in print and electronic media, including in the vernacular. With the scheme reaching its business end in the months of November and December, 2019, its visibility will only increase. For any queries call on toll free no. 1800-1200-232 or send an e-mail to [email protected]. (The auther is Commissioner Nagpur-II GST Commissionerate)