CBIC notifies GST Appeal Amnesty Scheme for Condonation of Delay for filing GST Appeals on or before 31st January 2024

In the 52^nd GST Council decided to introduce an amnesty scheme for Condonation of Delay for filing GST Appeals. This scheme has been notified by Central Board of Indirect Taxes and Customs (CBIC) through notification number 53/2023 Central Tax dated 02-11-2023 for taxpayers facing challenges in filing appeals against demand orders. This scheme comes as a relief to those who missed appeal deadlines or had their appeals rejected on grounds of time limitations. Here are the crucial details you need to know about this significant development. 

The Scheme Announced The Taxable person who could not file an appeal against the orders passed under the section 73 or 74 on or before 31" March 2023 to the commissioner or whose appeals under the said order have been rejected solely on grounds that the appeal was not filed within time period can file the appeal on or before 31" January 2024

Adjudication Orders: 

Adjudication Orders under Section 73 of the CGST Act, 2017 are passed for determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts. Such Orders deal with adjudication of such cases or show cause notices that do not allege fraud, any wilful misstatement or suppression of facts on the part of the taxpayers. However, Section 74 deals with the adjudication orders for determination of tax under those cases where taxpayers are alleged of fraud, wilful statement or suppression of facts.

Appeal Period under GST: 

An appeal against the said orders, passed under Section 73 or Section 74 of the CGST Act, may be filed under Section 107 ibid which provides that any person aggrieved by any adjudication order passed under the GST Acts may appeal within three months from the date of communication of said orders. Section 107(4) provides that the Appellate Authority may allow a further period of one month, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months. Hence, we see that before issuance of the aforesaid Amnesty Scheme Notification dated 2nd November, 2023, an appeal against any order passed under Section 73 or Section 74 of the CGST Act could be filed by an aggrieved taxpayer, under Section 107(1) ibid, within three months from the date of communication of the said orders. However, in terms of Section 107(4) ibid, the Appellate Authority had a discretionary power to allow one more month to the taxpayers for filing such appeals.

The Amnesty Scheme – A Second Chance:

Now, by virtue of the aforesaid Notification No. 53/2023– CENTRAL TAX dated 2nd November, 2023, the Taxpayers, who could not file an appeal for some technical or administrative reasons or whose appeals were previously rejected as time barred in terms of Section 107 of the CGST Act, 2017, can file appeal till 31st January, 2024, subject to conditions that:

Applicability

The Amnesty Scheme applies to appeals against demand orders issued under the Central Goods and Services Tax Act, 2017 (CGST Act) on or before March 31, 2023.

Filing Deadline

Taxpayers seeking the benefits of this scheme must file their appeals by January 31, 2024.

Pre-Deposit Requirement

To be eligible, taxpayers are required to make a pre-deposit of 12.5% of the disputed tax amount. Notably, at least 20% of this pre-deposit (equivalent to 2.5% of the tax under dispute) must be debited from the Electronic Cash Ledger.

Extended time limit under this Notification also available for the Appellant has paid in full or such part of tax, interest, fine and penalty as admitted by him;

Relief for Missed Deadlines

This initiative aims to provide a second chance to taxpayers who couldn\'t file their appeals due to technical or administrative issues. It allows them to have their cases reviewed by higher authorities.

Exceptions

• The Amnesty Scheme does not apply to appeals related to demands that do not involve tax.   
• No amnesty if orders passed on or after 01.04.23.
• No amnesty  For GST Registration cancellation
• No amnesty if order is passed only for penalty under section 129, 130, 122, etc.

Regulatory Framework

Appeals filed under this scheme will adhere to the rules outlined in Chapter XIII of the Central Goods and Service Tax Rules, 2017, with necessary modifications.

Conclusion

The CBIC\'s Amnesty Scheme presents a valuable opportunity for taxpayers to rectify their appeals\' time-related issues and have their cases reconsidered. By adhering to the specified deadlines and pre-deposit requirements, eligible taxpayers can seek resolution for their concerns related to demand orders under the CGST Act. This move is seen as a positive step towards providing relief and ensuring fair tax proceedings.