A total of Rs 5,472 crore has been declared under the indirect tax amnesty scheme, Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, a mid-term review of the scheme by the Central Board of Indirect Taxes and Customs (CBIC) has revealed.
The scheme gives a window to tax litigants to settle any pre-GST indirect tax related disputes. It covers disputes under central excise, service tax and specified cesses including education cess, krishi kalyan cess and swachh bharat cess, etc.
Sources in the CBIC said that the department is making all efforts to maximise declarations by December 31, 2019, when the scheme ends.
According to sources, tax officials of the rank of principal chief commissioners and chief commissioners of CGST, who have the information of eligible taxpayers readily available with them, have been asked to contact as many taxpayers as possible.
The number of such taxpayers is around 1.8 lakh. The indirect tax department has launched an intensive outreach programme to reach out to such taxpayers under the scheme.
The scheme is being monitored on the daily basis at the highest level in the department. Senior officials in CBIC are confident that the Scheme is likely to gain momentum in the coming days as the taxpayers would not forego this opportunity.
The scheme waives up to 70 per cent of the tax dues and 100 per cent of interest and penalty. If the tax dues are up to Rs 50 lakh, the scheme offers to waive 70 per cent of the dues and if the tax dues are more than Rs 50 lakh, the waiver will be 50 per cent. Besides, 60 per cent dues which are recoverable as arrears (matters have attained finality) will be waived if the tax involved is up to Rs 50 lakh and 40 per cent if the amount involved is more than Rs 50 lakh.
The government has estimated that Rs 3.6 lakh crore is locked up in 1.83 lakh cases at various quasi-judicial, appellate and judicial forums under Service Tax and Central Excise put together. These include cases under investigation, adjudication as well as arrears of confirmed demand.