Tax Professionals demand expanding scope of Amnesty Scheme

Tax professionals have been encouraged to expand the scope of the amnesty scheme launched by the Central Board of Indirect Taxes and Customs (CBIC) to include more taxpayers filing appeals against demand orders.

The amnesty scheme announced by the Centre in response to the outcome of the 52nd Goods and Services Tax Council meeting allows taxpayers to file appeals against demand orders until January 31, 2024.

The amnesty scheme allows appeals against demand orders passed on or before March 31, 2023, that were either rejected due to late filing or cases where the taxpayer failed to file an appeal or where a late-filed appeal is pending before the Appellate Authority and is liable to be rejected.

According to experts and tax professionals, the amnesty scheme has confined the eligibility of taxpayers, limiting its usefulness to taxpayers, and its scope should be expanded.

“It is the taxpayer’s right to appeal any order he is dissatisfied with,” MP Tax Law Bar Association president advocate AK Lakhotia said. If a taxpayer’s Section 54 refund application is denied for whatever reason, he has the right to appeal against the cancelled order, but such provisions are not included in the amnesty scheme.

In a memorandum to the state GST department, the MP Tax Law Bar Association and Commercial Tax Practitioners’ Association suggested the inclusion of more cases under the amnesty scheme to assist a greater segment of tax payers.