Govt weighs One-time offer to settle minor GST offences in works

Officials with knowledge of the matter said the government is mulling a Goods and Services Tax (GST) dispute settlement programme that would give firms a one-time chance to resolve tax disputes without going to court.

According to them, it will be a time-limited programme covering just minor GST infractions while providing a single chance to resolve prior excise tax, service tax, and customs duty problems.

The scheme will need to be approved by the GST Council, the apex decision-making body for the indirect tax.

A government official said, “Discussions are ongoing to permit enterprises to resolve disputes, and once we are ready with the details, it may be brought before the Council.”

He said that the programme would not apply to willful tax evasion. Ineligible individuals will also include repeat offenders and those who enforcement authorities have taken legal action against.

According to the official, the goal is to clear the court system of cases that have accumulated due to varying interpretations of the GST regulations.

The proposed scheme is likely to be on the lines of the Centre’s ‘Sabka Vishwas Scheme‘ of 2019, which sought to resolve all legacy disputes relating to erstwhile service tax and central excise. Apart from this scheme, the GST Council is already working on dedicated tribunals for dispute resolution.