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