Amnesty Scheme - 2021
The Government of Kerala vide Circular No. 3/2021 dated April 05, 2021, unveils an Amnesty Scheme, 2021 to settle outstanding tax dues pertaining to the period before GST introduction. The Amnesty scheme will be applicable for all pending tax arrears including cases in appeals (except arrears under KGST from 2005 onwards). The scheme shall apply to the outstanding dues under following Statutes such as:
- Kerala Value Added Tax Act,
- Central Sales Tax Act,
- Tax on Luxuries Act,
- Kerala Surcharges Act,
- Kerala Agriculture Income Tax Act, and
- Kerala General Sales Tax Act.
Key highlights of the amnesty Scheme, 2021 are:
- 100% waiver of interest and penalties.
- 40% waiver of the balance tax arrear, if outstanding dues paid in a lump-sum.
- 30% waiver of the balance tax arrear, if outstanding dues paid in installments.
- Amnesty scheme will be applicable for all pending tax arrears including cases in appeals (Except arrears under KGST from 2005 onwards).
- The assessee can opt to settle the arrears relating to a particular assessment year, subject to the condition that all arrears falling under the said assessment year is opted.
- Option to avail the amnesty scheme should be made on or before 30 November 2021.
- For those who opts for the payment of arrears in installments, the first installment thereof shall not be less than 20% of the amount determined and such amounts shall be paid within thirty days of the receipt of the intimation. The balance amounts are to be paid in installments, subject to a maximum of 4 installment.
- In the case of demands that have been newly generated after 30-11-2021, the option shall be exercised within 30 days from the date of receipt of such order. However, in all such cases the final payments shall be made on or before 31-03-2022.
- The last date for payment of the amount determined under the scheme shall be 31-03-2022.
- Tax or interest paid after receipt of demand notice shall be given due credit towards tax.
- Tax payer who have failed to settle arrears under the previous amnesty scheme can also opt this scheme.
- Any amount paid under the earlier amnesty scheme shall be given due credit towards tax before reckoning the arrears to be settled under the Amnesty Scheme 2021.
- Those who have compounded offences and paid tax under such proceedings, the tax thereon will be given credit towards tax before reckoning the arrears to be settled under the Amnesty Scheme 2021.
- No refund shall be allowed under the scheme.
In the case of arrears under Kerala General Sales Tax Act, the amnesty scheme is applicable only for the outstanding dues prior to the period 1st April, 2005. But in the case of arrears from 01/04/2005 to 31/03/2021 principal amount and interest shall be paid. There shall be full waiver of penalty.
A detailed guidelines has been issued based on the Amnesty Scheme introduced in 2020 as per circular No. 2/2020. The same stands modified to the above extent.