SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) and the Kashmir Trade Alliance (KTA) has warmly welcomed the newly announced GST Amnesty Scheme, while also urging for greater clarity on certain aspects to eliminate ambiguities. Additionally, FCIK is advocating for the extension of this scheme to include all tax periods beyond 2020.
Effective from November 1, 2024, the GST Amnesty Scheme, introduced by the Ministry of Finance under Section 128A of the CGST Act, 2017, aims to alleviate the financial burdens faced by taxpayers by waiving interest and penalties for those who fully settle their tax liabilities for the fiscal years 2017-18 to 2019-20 by March 31, 2025. The scheme specifically targets taxpayers with demands, provided there are no allegations of fraud or willful misrepresentation.
While expressing satisfaction with the GST Amnesty Scheme, FCIK in a statement issued here emphasized the necessity of extending the initiative to cover all years of the GST regime, from its inception in 2017 to the present, as well as prolonging the remittance period for arrears.
Members of the FCIK Advisory Committee analyzed the Amnesty Scheme and noted that while it aims to waive outstanding interest and penalties from July 2017 to March 2020, the designated settlement period for qualifying taxpayers, ending in March 2025, is insufficient and should be reconsidered.
Committee members highlighted the scheme’s potential to reduce litigation stemming from interpretational challenges and errors; however, they stressed the need for greater clarity on key points. Questions arose regarding whether the scheme applies to all types of tax payments, regardless of the method used, and whether it is applicable in cases where only interest dues exist without a corresponding tax liability.
Concerns were also raised about how eligibility for non-fraudulent cases would be determined, particularly since the department has issued frivolous notices under Section 74 even in the absence of fraud. Members warned that taxpayers might face protracted litigation to establish whether any fraudulent activity had occurred.
Despite these concerns, members expressed optimism that the scheme will provide crucial relief to businesses entangled in transitional credit disputes stemming from errors during the transition period, where credits were improperly claimed and utilized.
“While the scheme currently addresses only the first three years of GST, it is vital to extend it beyond 2020 for taxpayers in Jammu and Kashmir, considering the ongoing challenges they have faced due to reorganization and disruptions caused by the COVID-19 pandemic,” FCIK stated.
FCIK emphasized that the challenges related to GST defaults have largely arisen from interpretational difficulties, misunderstandings of forms, human errors, and various other factors encountered over the years of the GST regime. It is therefore crucial to extend relief to all enterprises, particularly MSMEs, which are grappling with numerous issues that threaten their very survival.
FCIK has resolved to formally address this issue with the UT and Central Government to secure much-needed relief for the taxpayers of Jammu and Kashmir.