GST Council May Reduce upfront payment for tax appeal to 7%, Implementing Amnesty Scheme, and Mandating Biometric Aadhaar Authentication

By: Admin
June 15, 2024
Categories: GST Recent News
4 Min Read

The Goods and Services Tax (GST) Council is expected to discuss a proposal to lower the initial deposit required before filing a tax appeal from 10% to 7% of the contested tax amount during its meeting on June 22, according to sources. The council may also consider implementing an amnesty scheme for disputes predating the GST regime and making biometric-based Aadhaar authentication compulsory for high-risk individuals applying for GST registration.

Officials stated that once the council approves the amnesty scheme, it could be announced in the upcoming budget. In the interim budget, the finance minister had introduced an amnesty scheme for minor direct tax disputes involving up to ₹ 25,000. While states and the central government can independently implement amnesty schemes for pre-GST disputes, a council discussion will aid in creating a uniform approach.

Businesses are encouraging the GST Council to prioritize an amnesty scheme to resolve tax disputes arising from the GST rollout, according to an expert. The amnesty would provide businesses with an opportunity to settle past tax issues without incurring significant penalties and alleviate the strain on courts. The council may also examine the procedures for pre-deposits in instances where businesses have already made deposits before challenging tax demands.

A senior official informed ET that numerous decisions are anticipated to enhance business ease and simultaneously strengthen the scrutiny process for high-risk taxpayers. The official added that given the successful pilot of biometric-based Aadhaar authentication in Gujarat, Andhra Pradesh, and Puducherry, the council might consider making it obligatory nationwide for suspicious and high-risk individuals seeking GST registration.