Sabka Vishwas-Legacy Dispute Resolution Scheme 2019 (Download PDF)

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The Union Finance Minister of India announced Sabka Vishwas-Legacy Dispute Resolution Scheme, 2019 on Aug 22,2019. This scheme will be operationalized from 1st September 2019 and shall continue till 31st December 2019. This scheme is expected to be availed by large number of tax payers in order to closing their pending disputes relating to legacy Service Tax. This also includes Central Excise cases that comes under GST.

Image shows Sabka Vishwas-Legacy Dispute Resolution Scheme 2019

Image Shows Sabka Vishwas-Legacy Dispute Resolution Scheme 2019

Image shows Sabka Vishwas-Legacy Dispute Resolution Scheme 2019

Objectives and Components

  • The main objective of the scheme is to free small taxpayers of their pending disputes with the tax administration. These cases have been lying pending since a long time.

  • Under the Dispute Resolution mechanism, the liquidating legacy cases of Central Excise and Service Tax have been subsumed under GST. The same cases are pending in litigation at various forums.

  • Under the Amnesty Component opportunity is being provided to taxpayers to pay outstanding tax and be free of any other consequence under law.

  • Apart from full waiver of interest, fine and penalty the scheme also provides substantial relief in tax dues for all categories of cases. The aim is also to ensure complete amnesty from prosecution.

  • The Sabka Vishwas legacy dispute resolution scheme also offers a relief of 70 % from the duty demand if it is Rs. 50 lakhs or less and 50 % if it is more than Rs. 50 lakhs.

  • The relief offered is 60 % of the confirmed duty amount for cases where there is no appeal pending.

  • The person availing the Scheme will have to pay only the full amount of disclosed duty for cases of voluntary disclosure.

  • During the announcement of the Union Budget 2019, it was revealed that more than Rs. 3.75 lakh crore is blocked in excise and service tax litigations.

- Published/Last Modified on: September 20, 2019

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