Sabka Vishwas is an innovative initiative introduced by the Government to conclusively resolve legacy disputes relating to Service Tax and Central Excise cases. It came into operation from 1st September 2019, offering tax-related dispute resolution and amnesty to taxpayers. The primary objective of this scheme is to alleviate the burden of unresolved litigations pertaining to Central Excise and Service Tax cases that are subsumed under the Goods and Services Tax (GST) structure. By doing so, the Scheme aims to provide a sigh of relief to numerous small taxpayers entangled in pending disputes.
Main Components of Sabka Vishwas Scheme
The Scheme is designed with two main components: a dispute resolution component and an amnesty component. Both components play vital roles in meeting the Scheme’s objective.
The dispute resolution component specifically targets to liquidate the pile-up of Central Excise and Service Tax cases, now incorporated in GST, awaiting litigation at various forums. Essentially, it offers a streamlined process for resolving these outstanding cases and reducing backlog.
The amnesty component of the Scheme provides a unique opportunity to taxpayers. It allows them to clear their pending tax dues while absolving them from any further consequences under the law.
Benefits of Sabka Vishwas Scheme
One of the most alluring aspects of this Scheme lies in the significant relief it offers in tax dues across all case categories. It provides a full waiver on related interest, fine, and penalty in all cases resolved under the Scheme. Hence, once a taxpayer settles their outstanding tax through the Scheme, they bear no other liabilities in the form of interest, fines, or penalties.
Besides the monetary benefits, the Scheme also ensures complete amnesty from prosecution, adding another layer of security for taxpayers who avail of its provisions.
| Key Features | Description |
|---|---|
| Launch Date | 1st September 2019 |
| Main Components | Dispute resolution & Amnesty |
| Tax Relief | Full waiver of interest, fine, penalty |
| Additional Benefit | Complete amnesty from prosecution |
Scheme Objective
The primary aim of Sabka Vishwas Scheme is to liberate a large number of small taxpayers from their pending disputes with the tax administration. By providing an efficient dispute resolution mechanism coupled with generous amnesty provisions, the Scheme offers a clear path for these taxpayers to reconcile their pending issues. In doing so, it seeks to enhance the ease of doing business while fostering a more compliant and less litigative tax ecosystem.