Table of Contents

Who can avail the benefit of LDRS?

Following person are eligible to opt for LDRS. It is notified by the government.

SCN for Duty has been issued or Appeal arising out of SCN is pending & final hearing not taken place as on 30.06.2019

SCN has been issued for penalty & late fee & final hearing has not taken place as on 30.06.2019

Arrears Pending

Audit or Investigation undergone & duty liability quantified or admitted on or before 30th June, 2019

Voluntary Disclosure

Acts Covered by the LDRS

The Central Excise Act, 1944 or The Central Excise Tariff Act, 1985 – Excise Dues
Chapter V of Finance Act, 1994 – Service Tax Dues
Rules made under above enactments
Agricultural Produce Cess Act, 1940
The Coffee Act, 1942
The Mica Mines Labour Welfare Fund Act, 1946
The Rubber Act, 1947
The Salt Cess Act, 1953
The Medical & Toilet Preparations (Excise Duties) Act, 1955
The Additional Duties of Excise (Goods of Special Importance) Act, 1957
The Mineral Products (Additional Duties of Excise & Customs Act) Act, 1958
The Sugar (Special Excise Duty) Act, 1959
The Textiles Committee Act, 1963
The Produce Cess Act, 1966
The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972
The Coal Mines (Conservation & Development) Act, 1974
The Oil Industry (Development) Act, 1974
The Tobacco Cess Act, 1975
The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Cess Act, 1976
The Bidi Workers Welfare Cess Act, 1976
The Additional Duties of Excise (Textile & Textile Articles) Act, 1978
The Sugar Cess Act, 1982
The Jute Manufacturers Cess Act, 1983
The Agricultural & Processed Food Products Export Cess Act, 1985
The Spices Cess Act, 1986
The Finance Act, 2004, Finance Act, 2007, Finance Act, 2015, Finance Act, 2016
Any other act, as the Central Government may notify.

LDRS

Benefits available under LDRS

Complete waiver of Interest, Penalty & Fine in all the cases
Immunity from Prosecution
Appeal or Adjudication is pending

Amount in arrears & Confirmed duty demand

Voluntary Disclosure – Pay only the tax amount of duty disclosed.

Procedures to Follow – LDRS

Declaration

• File Declaration electronically before 31st December, 2019 – https://cbic-gst.gov.in
• Acknowledgement with a unique reference number will be generated, which shall be used for all further correspondence

Verification
• Declaration will be routed to the Designated Committee.

• Verification of the declaration made (except voluntary disclosure) based on the details furnished & the records available by the committee.

Liability Confirmation

• The Designated Committee will compute and issue a Statement mentioning amount payable by the Declarant

• Declarant will be given an opportunity of being heard, if he does not agree to the Statement

Payment

• The Declarant will have to make the payment, within 30 days electronically.

• Submission of Proof of Payment to the Committee.

Discharge Certificate
• Once the payment is made, Discharge Certificate will be issued, electronically to the Declarant within 30 days.

• Any mistake, in calculating the amount payable, which is apparent from records, can be rectified within 30 days.

Discharge Certificate – What it Means?

Not liable to pay any further duty, penalty or interest with respect to the matter and time period covered in the declaration
Not liable to be prosecuted under the Indirect Tax Enactment with respect to the matter and time period covered in the declaration
No matter and time period covered by the declaration shall be reopened in any other proceeding under the indirect tax enactment.

Points to Consider

Input Tax Credit cannot be availed of the amount paid under the scheme.
Payment cannot be made by utilizing the Input Tax Credit.
No refund of any amount paid under the scheme shall be granted.
This scheme is similar to the Voluntary Compliance Encouragement Scheme, 2013 (VCES 2013)
Scheme Validity – from 1st September 2019 to 31st December, 2019
Last chance for settlement of Pre GST tax dues.

At present, as per the estimate, more than Rs. 3.75 Lakh Crores are blocked in Service Tax and Central Excise litigation. The basic purpose of introduction of this scheme is to reduce this litigation burden.

Types of Forms

Form	Description
SVLDRS 1	Declaration under Section 125
SVLDRS 2	Amount Payable as determined by the Committee, when such amount exceeds the amount mentioned in SVLDRS 1 and Opportunity of being heard
SVLDRS 2A	Written Submission or Waiver of Personal Hearing or Adjournment by the Declarant
SVLDRS 2B	Adjournment by the Committee
SVLDRS 3	Statement by the Designated Committee mentioning amount payable
SVLDRS 4	Discharge Certificate

CA Utkarsh Desai

Highlights of the LDRS notified by the Government