Gujarat VAT & CST

Gujarat VAT/Sales Tax Amnesty Scheme-2016

[By Shaleen Shah (Partner), VNCA]

In the Gujarat State Budget for FY 2016-17, the State Finance Minister had announced that in view of the imminent implementation of the composite Goods & Services Tax (GST), it was necessary to resolve the problems relating to past outstanding tax dues under the VAT / Sales Tax laws. To reduce the administrative burden and prepare for the implementation of GST, the Finance Minister had announced an Amnesty Scheme in the Budget to be notified. The State Government has notified the Amnesty Scheme on 1-Aug-2016.

The gist of the scheme is as follows:

• The scheme will be known as "VAT/Sales Tax Amnesty Scheme-2016";
• The scheme will cover dues arising from The Gujarat VAT Act, 2013, Gujarat Sales Tax Act, 1969, Central Sales Tax Act, 1956 & Motor Spirits Act;
• The scheme will be applicable to dues outstanding upto 31-Dec-2015;
• The application under the scheme will have to be made by 31-Dec-2016;
• Where a demand for evasion arises from an Assessment Order passed upto 31-Dec-2015, if the Assessee pays the amount of tax, interest and 25% of the penalty as per the Order, remission will be given for the balance amount of penalty. In such cases, the Dealer will also be eligible for the scheme where appeal is filed upto 31-Dec-2015 subject to the condition that the appeal is withdrawn;
• Where demand arises other than for evasion from Orders passed upto 31-Dec-2015 pertaining to assessment, provisional assessment, issue based assessment, re-assessment or revision, if the Assessee pays the amount of tax as per the Order, remission will be given for the entire amount of interest and penalty. In such cases, the Dealer will also be eligible for the scheme where appeal is filed upto 31-Dec-2015 subject to the condition that the appeal is withdrawn;
• Where any assessment proceedings are pending for the period upto 31-Dec-2015, Dealers can taken benefit of the scheme by declaring the undisclosed tax and paying the amount of tax, interest and 25% of the penalty thereon;
• The scheme will not be available where the total amount (tax only) involved for all years put together (incl. that arising under the scheme) exceeds Rs.10 Crores;
• On filing the Application, the decision of the Commissioner will be final whether the benefit of the Scheme is available to the Dealer or not;
• No refund will be allowed;
• Applications under the scheme will be assessed and the Order for remission allowed under the scheme will be passed by 31-Mar-2017;
• The Order under the scheme is not appealable;
• The scheme will not be available where notice is issued for additional demand in proceedings pertaining to assessment, provisional assessment, issue based assessment, re-assessment or revision;
• The scheme will not be available where the demand pertains to penalty only;
• Applicants under the scheme have an option to pay the amount payable under the scheme in installments.

Tags: Legal-Updates