The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (‘LDS’)

The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (‘LDS’)  

 Union Budget  the Honorable Finance Minister has announced  Sabka Vishwas Legacy Dispute Resolution Scheme

The scheme will be launched soon to resolve  the pending litigations that were raised under the excise and service tax regime

The Government is looking into resolve existing disputes under dispute resolution cum amnesty model. 

Why this scheme is so important?

There are more than Rs 3.75 lakh crore blocked in pre-GST tax litigations

Realisation of half of the amount will help to utilise in various infrastructural projects

After implementation of the GST, there is an urgent need to close the earlier disputes

What   relief is provided under the scheme ?

The settlement under the scheme depends upon 40 %  to 70%  of    the tax due under dispute in all cases

Applicable to all except for the following

•      Cases already pending before the settlement commission or 

•      Cases where parties face conviction

What are the other benefits available under the scheme?

 Waiver of interest and penalty on full payment of tax dues and not being subject to prosecution