Sabka Vishwas Legacy Dispute Resolution Scheme

Sabka Vishwas Legacy Dispute Resolution scheme was being introduced as part of Union Budget 2019 for resolution and settlement of legacy cases of Central Excise and Service Tax. Sabka Vishwas Legacy Dispute Resolution scheme is a dispute resolution cum amnesty scheme. 

The proposed scheme covers past disputes of taxes which have got subsumed in GST namely Central Excise, Service Tax and Cesses.

More than 3.75 lakh crore is blocked in litigations in service tax and excise in the Pre-GST era. Legacy Dispute Resolution Scheme plans to allow quick closure of these litigations and allow the business to move on. 

Relief

The relief under the scheme varies from forty percent to seventy percent of the tax dues for cases other than voluntary disclosure cases, depending on the amount of tax dues involved.

The scheme also provides relief from payment of interest and penalty.

For voluntary disclosures, the relief is regarding waiver of interest and penalty on payment of full tax dues disclosed.

The person discharged under the scheme shall also not be liable for prosecution.

The Scheme provides for method of payment of tax dues, arrears and restrictions regarding the manner of payment etc.

The Scheme shall become available from a date to be notified.

Eligibility Criteria

All persons are eligible to avail the scheme except a few exclusions including as those convicted under the act in the case for which he intends to make the declaration and those who have filed an application before the Settlement Commission.

Application Procedure

The procedural details and rules regarding the Scheme shall be notified in due course.