AMNESTY SCHEME (Syllabus: GS Paper 3 - Economy)

Context: The finance ministry recently introduced an amnesty scheme for filing appeals against Goods and Services Tax (GST) demand orders.

Amnesty Scheme

• About: The amnesty scheme allowing appeals, missed to be filed against jurisdictional orders due to technical or administrative errors, while requiring a tax demand, strikes a balance between relief to taxpayers and maintaining the integrity of tax collections.
• This approach can help reduce the burden of litigation benefiting both taxpayers and tax authorities.”
• Coverage: Only covers orders passed under sections 73 and 74 of CGST Act

Goods and Services Tax (GST)

• History: The idea of a Goods and Services Tax (GST) for India was first mooted during the Prime Ministership of Shri Atal Bihari Vajpayee.
• Introduced: The Constitution (122nd Amendment) Bill was introduced in 2014.
• Effective from: It was launched with effect from 1st July 2017. It is completely transformed the indirect tax structure of India.
• It subsumed: GST was born out of subsuming of 17 taxes and 13 cesses levied by the Central and State governments.
• New Structure Slab: 5%, 12%, 18 and 28%.
• GST Council: The GST Council is a joint forum of the Centre and the States which makes recommendations to the Union and the States on GST.