Amnesty Scheme - To withdraw Appeal or not?

[VAISHACH Vaishach]

Hello.

I have an order for FY 2018-19, We were given a showcause notice for around 9,00,000 IGST and 1,80,000 CGST and 1,80,000 SGST for excess availement.

When thenotice was received , we realised our mistake to the tune of 7 Lakhs in IGST and the entire portion of CGST and SGST. We paid the tax on the same .

The GST tax officer issued the notice to pay remaning 2,00,000 and around 9,00,000 worth of interest

However for 2 Lakhs we have a winnable case so we had filed an appeal contesting the 2,00,000 IGST. Originally the party had filed the GST under wrong GST number and it did not reflect on our records. Now he has corrected it so it has reflected on my GSTR 2A. So it is Black and white.

The Appeal date has not yet been alloted so far and with Amnesty scheme coming to a close on 31.03.2025, we are are in a dilemma.

We have a winnable case and we are sure to reduce the IGST and interest by 4,00,000 but the waiver of the remaining interest would be on the tax officer. The other alternate option would be to pay the 2,00,000 and get out safely with the interest portion waived. What would be your advice?

[KASTURI SETHI]

The case is worth-winning in your eyes but it should be strong on merits in the eyes of the judge (the Appellate Authority). 

In my opinion, you must not miss the bus. This golden opportunity will not come again. So deposit the balance amount of Rs.2,00,000/-  and withdraw appeal and be tension-free. 

           

[Shilpi Jain]

Pls note, there is no waiver that can be given for interest otherwise. So if you are not going for amnesty scheme and interest in notice is as per law then that interest will have to be paid.

So on this basis you can see if amnesty is beneficial.

[KALLESHAMURTHY MURTHY K.N.]

Dear Sir, 

Both experts have given good suggestions. It would be worthwhile to withdraw the appeal and avail amnesty benefit. 

[VAISHACH Vaishach]

Thank your for your replies experts, based on your suggestion Amnesty Scheme has been applied succesfully

AI Summary

Weighing GST Appeal Options: Pursuing Strong Evidence vs. Amnesty Scheme Benefits with Interest Waiver The query concerns whether to withdraw a GST appeal to take advantage of an amnesty scheme ending March 31, 2025. The taxpayer received a notice for excess input tax credit and paid most of the disputed amount (7 lakhs IGST plus CGST/SGST), but contested 2 lakhs IGST where they have strong evidence. The dilemma involves choosing between pursuing the appeal with potential savings of 4 lakhs (tax plus interest) versus withdrawing the appeal under the amnesty scheme to get interest waived. Three experts advised withdrawing the appeal and utilizing the amnesty scheme, noting that interest waivers are not otherwise available. The taxpayer ultimately followed this advice and successfully applied for the amnesty scheme.