The Goods and Services Tax ( GST ) Council is set to meet on June 22 to consider a proposal to reduce the initial deposit required before filing a tax appeal from 10% to 7% of the contested tax amount, according to sources.
The Council is also expected to discuss implementing an amnesty scheme for tax disputes predating the GST regime and making biometric-based Aadhaar authentication mandatory for high-risk individuals applying for GST registration.
Officials indicate that if the Council approves the amnesty scheme, it could be announced in the upcoming budget. The finance minister had previously introduced an amnesty scheme for minor direct tax disputes involving up to ₹25,000 in the interim budget. Although states and the central government can independently implement amnesty schemes for pre-GST disputes, a unified approach through Council discussion is favoured.
Experts suggest that businesses are urging the GST Council to prioritise an amnesty scheme to resolve tax disputes from the GST rollout. Such an amnesty would allow businesses to settle past tax issues without significant penalties, easing the burden on courts.
Additionally, the Council may review procedures for pre-deposits in cases where businesses have already made deposits before challenging tax demands.
A senior official stated that several decisions are expected to enhance business ease while strengthening the scrutiny process for high-risk taxpayers.
She added that the successful pilot of biometric-based Aadhaar authentication in Gujarat, Andhra Pradesh, and Puducherry could lead to nationwide implementation for suspicious and high-risk GST registration applicants.
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