CBIC notifies Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019

The Central Board of Indirect Taxes and Customs (CBIC) vide Notification dated 21st August 2019 has published Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019.

The two main components of the Scheme are dispute resolution and amnesty: 

The dispute resolution component is aimed at liquidating the legacy cases of Central Excise and Service Tax that are subsumed in GST and are pending in litigation at various forums. The amnesty component of the Scheme offers an opportunity to the taxpayers to pay the outstanding tax and be free of any other consequence under the law. The Scheme will provide substantial relief in the tax dues for all categories of cases as well as full waiver of interest, fine, penalty.

The key point of the notification are as below:

  1. Every declarant shall file declaration under section 125 electronically in Form SVLDRS-1 on or before the 31st day of December,2019.
  2. Separate declaration is required for each of the following case –
    1. a show cause notice, or one or more appeal arising out of such notice which is pending as on the 30th day of June, 2019; or 
    2. an amount in arrears; or
    3. an enquiry or investigation or audit where the amount is quantified on or before the 30th day of June, 2019; or
    4. a voluntary disclosure.
  3. An auto acknowledgement bearing a unique reference number shall be generated by the system on receipt of declaration.
  4. A designated committee shall be constituted and the declaration made under the scheme shall be verified by the committee.
  5. Every declarant shall pay electronically the amount, as indicated in Form SVLDRS-3 issued by the designated committee, within 30 days from the date of its issue.

The Rules will come in force from 1st September, 2019. 

Click here to read the notification.