Sabka Vishwas (Legacy Dispute Resolution) Scheme {सबका विश्वास योजना} - Objectives, Cases Covered, Benefits and Function
The Sabka Vishwas Scheme was first proposed by the honourable Finance Minister of India Nirmala Sitharaman in the 2019 Union Budget. The main aim of this scheme is to resolve disputes of the taxpayers relating to legacy service tax and central excise that are subsumed under GST. This scheme was implemented from 1st September, 2019 and continued till 31st December, 2019 i.e., the scheme valid for 4 months but the government recently extended the period till 15th January, 2020. This scheme gives relief to the taxpayers from pending disputes. To know more about Sabka Vishwas Legacy Dispute Resolution (SVLDRS) scheme, 2019 read the article till the end.
Name | Sabka Vishwas (Legacy Dispute Resolution) scheme |
Authority | Central Board of Indirect Taxes and Customs (CBIC) |
Type | Amnesty scheme |
Year | 2019 |
Start date | 1st September, 2019 |
Last date | 15th January, 2020 |
Launched by | Nirmala Sitharaman (Finance Minister) |
Official website |
Objectives
The main objectives of Sabka Vishwas Scheme are as follows:
- To encourage the taxpayers voluntarily disclosure their past disputes of Service-tax, Central excise and 26 other Indirect-tax enactments,
- To encourage the eligible taxpayers to pay their pending tax amount,
- The eligible taxpayers will be provided certain immunities such as interest, penalties or any other prosecution proceedings.
Cases Covered Under the Scheme
The cases covered under Sabka Vishwas Scheme, 2019
- A show cause notice or appeals arising out of a show cause notice pending as on the 30th day of June, 2019,
- An amount in arrears,
- An enquiry, investigation or audit where the amount is quantified on or before the 30th day of June, 2019,
- A voluntary disclosure.
Excluded Cases
- Cases in respect of excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944 (this includes tobacco and specified petroleum products),
- Cases for which the taxpayer has been convicted under the Central Excise Act, 1944 or the Finance Act, 1944,
- Cases involving erroneous refunds,
- Cases pending before the Settlement Commission.
Benefits
The benefits under Sabka Vishwas Scheme are listed below:
- For being free from any consequences under the law, the taxpayers have to pay their pending tax amount that is due,
- The taxpayers will get relief from total waiver of interest, penalty and fine,
- The taxpayers will also get complete immunity from prosecution.
Conditions for Availing the Benefits
The benefits can be availed by the taxpayers when the following conditions will be fulfilled:
- The amount that the taxpayer will pay is not refundable,
- The taxpayer is not allowed to pay the amount through the input tax credit account,
- Refund won’t be provided, if pre-deposit exceeds the payment,
- Tax dues paid cannot be taken as input tax credit or entitle any person to take input tax credit as a recipient.
Relief Provided Under this Scheme
The relief that will be provided to the taxpayers under this scheme are mentioned below:
Relief amount from Duty Demand | For cases pending adjudication or an appeal | For cases where tax dues in arrears | For cases where amount of duty is not paid | For cases of voluntary disclosures | For cases where the tax dues are related to late fee and penalty |
50 lakh or less | 70% | 60% | 60% | The full amount of duty disclosed | 100% amount of late fee / penalty |
More than 50 lakh | 50% | 40% | 40% |
Function
The Sabka Vishwas Scheme functions in the following ways:
1. The declaration shall be filed electronically at https://cbic-gst.gov.in (please read about how to register and login in below sections). For each case, a separate declaration needs to be filed.
2. A unique reference number will be generated by the system on receipt of declaration.
3. Based on the particulars furnished by the declarant and on the records that are available with the department, the designated committee shall verify the declaration submitted. In cases of voluntary disclosure, this verification will not be done:
- Within the period of 60 days, a statement will be issued by the designated committee in Form SVLDRS-3 with the particulars of the amount payable. If there is no appeal pending in the High Court/Supreme Court and the amount payable is nil then this statement will not be issued.
- The designated committee should issue an estimate of the amount payable in Form SVLDRS-2 within 30 days of the receipt of declaration, if the estimated amount payable by the declarant turns out to be more than what has been declared.
- The declarant has to file Form SVLDRS-2A, if he/she wishes to agree or disagree with the estimate calculated by the designated committee, to waive the personal hearing, to make any written submission or to seek an adjournment.
- If the declarant does not come on the appointed date before the designated committee or the form has not been filed yet then the committee will make its decision based on the records.
- The designated committee has the power to modify order and issue a revised Form SVLDRS-3.
- Within 30 days of issuing Form SVLDRS-3, the modification should be done.
- Within 30 days of issuing Form SVLDRS-3, it should correct the arithmetical or clerical error, which is apparent on the face of record.
4. Within 30 days the declarant has to pay the amount mentioned in Form SVLDRS-3, from the date of its issue.
5. The proof of withdrawal of appeal or writ petition filed before a High Court/Supreme Court need to be furnished by the declarant.
6. The designated committee will issue a discharge certificate in Form SVLDRS-4 within 30 days of payment, once it is satisfied that the declarant has paid the total amount.
How to Login?
The taxpayers can login into the Sabka Vishwas scheme portal in the following steps mentioned below:
1. First, visit the official website of CBIC i.e., cbic-gst.gov.in.
2. Then, click on the SVLDRS link on the menu.
3. A page will appear on your screen which is shown below.
4. The homepage will appear, scroll down there will be ‘Click here to SVLDRS Login’ option. Click it.
5. A new page will open where the taxpayer’s user id and password will be asked.
6. Then, the taxpayer can click on the ‘login’ button.
Registration
If the taxpayer is a new user, he/she has to first register themselves with CBIC portal for availing the benefit of the scheme. The taxpayer has to follow the steps mentioned below for registration:
1. First of all, the taxpayer has to visit the official website of CBIC i.e., cbic-gst.gov.in.
2. Then, click on the SVLDRS link on the menu.
3. A page will appear on your screen which is shown below.
4. The homepage will open where there will be ‘Click here to SVLDRS Login’ option, click on it.
5. A page will appear where there will be a New User section under that there are two options for registering.
6. If the taxpayer, selects ‘New Registration’ option:
- The taxpayer has to enter the required details such as name, PAN number, mobile number, email id, state etc.
- After filling all the details, the taxpayer can click ‘submit’ button.
- The taxpayer will be registered.
7. If the taxpayer, selects ‘TRN Login’ option:
- The taxpayer has to enter the ‘temporary reference number’ and the captcha.
- Then, click on the ‘Generate OTP’ button.
- An OTP will be generated and the taxpayer will be registered.
Frequently Asked Questions
Q. What is the full form of SVLDRS?
SVLDRS stands for Sabka Vishwas Legacy Dispute Resolution scheme.
Q. What is Sabka Vishwas Scheme?
Sabka Vishwas Legacy Dispute Resolution Scheme is an amnesty scheme proposed by the Finance Minister of India to resolve disputes relating to pending tax amounts.
Q. Is the Sabka Vishwas Scheme extended?
Yes, the scheme has been extended from 31st December, 2019 to 15th January, 2020.
Q. What is the official website of SVLDRS scheme?
The official website of the SVLDRS scheme is https://cbic-gst.gov.in/.
Q. What are enactments to which SVLDRS scheme applies?
The enactments to which Sabka Vishwa Scheme applies are –
The Agricultural Produce Cess Act,1940
The Coffee Act, 1942
The Mica Mines Labour Welfare Fund Act, 1946
The Rubber Act, 1947
The Salt Cess Act, 1953
The Medicinal and Toilet Preparations (Excise Duties) Act, 1955
The Additional Duties of Excise (Goods of Special Importance) Act, 1957
The Mineral Products (Additional Duties of Excise and Customs) Act, 1958
The Sugar (Special Excise Duty) Act, 1959
The Textiles Committee Act, 1963
The Produce Cess Act, 1966
The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
The Coal Mines (Conservation and Development) Act, 1974
The Oil Industry (Development) Act, 1974
The Tobacco Cess Act, 1975
The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976
The Bidi Workers Welfare Cess Act, 1976
The Additional Duties of Excise (Textiles and Textile Articles) Act, 1978
The Sugar Cess Act, 1982
The Jute Manufacturers Cess Act, 1983
The Agricultural and Processed Food Products Export Cess Act, 1985
The Spices Cess Act, 1986
The Finance Act, 2004
The Finance Act, 2007
The Finance Act, 2015
The Finance Act, 2016
Q. Will I be eligible for SVLDRS Scheme if I have issued SCN for a refund?
No, you will not be eligible for SVLDRS scheme.
Q. Distinguish between tax relief and tax dues?
Tax relief reduces the amount of tax that will be paid by taxpayers whereas tax due means the outstanding amount that needs to be paid by the taxpayers.
Q. What is the time period for payment made by the declarant?
Within 30 days the declarant has to pay the pending tax amount.
Q. Can I make payment through input tax credit?
No, the declarant shall not make payment through input tax credit account.
Q. Is refund of payment is available under SVLDRS scheme?
No, the declarant cannot refund the amount once paid under this scheme.
Q. Through which form, declaration can be made?
Through FORM SVLDRS – 1 the taxpayer can make a declaration under this scheme.
Q. How can I withdraw an appeal?
By filling FORM SVLDRS – 3 one can make an appeal for withdrawal.
Q. Can I file a declaration under SVLDRS scheme regarding some paragraphs consists in the audit report?
Yes, you can file a declaration under this scheme.
Q. Is the amount will be refundable in case pre-deposit exceeds payment?
No, the amount won’t be refundable if pre-deposit exceeds payment.
Q. How much time is required by the designated committee to make the final decision?
The final decision will be made by the designated committee within 60 days of filling the declaration.
Q. Can I apply for the Sabka Vishwas Scheme offline?
No, you can’t apply offline. The taxpayers have to apply online for SVLDRS scheme.
Q. Who proposed the SVLDRS Scheme?
The Finance Minister of India, Nirmala Sitharaman proposed this scheme in the 2019 union budget.
Q. When was the Sabka Vishwas Scheme implemented?
The scheme was implemented on 1st September, 2019.
Q. who controls and monitors SVLDRS scheme?
Central Board of Indirect Taxes and Customs controls and monitors this scheme.
Q. Is the Sabka Vishwas Scheme important?
Yes, this scheme is important for the taxpayers as it will provide them relief from the pending disputes.