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?

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.