Amnesty Scheme 2022 Overview
On March 25, 2022, the Government of Kerala introduced the Amnesty Scheme 2022 through Circular No. 5/2022. This initiative aims to assist taxpayers in settling outstanding tax dues that accrued before the implementation of the Goods and Services Tax (GST). The scheme covers all pending tax arrears, including those under appeal, with the exception of arrears under the Kerala General Sales Tax (KGST) from 2005 onward. The amnesty applies to outstanding dues related to the following statutes:
- Kerala Value Added Tax Act
- Central Sales Tax Act
- Tax on Luxuries Act
- Kerala Surcharges Act
- Kerala Agriculture Income Tax Act
- Kerala General Sales Tax Act
Key Features of the Amnesty Scheme 2022
The Amnesty Scheme 2022 includes several significant benefits for eligible taxpayers:
- Interest and Penalty Waiver: A 100% waiver on all interest and penalties.
- Tax Arrears Waiver:
- A 40% waiver on remaining tax arrears if the outstanding dues are settled in a lump sum.
- A 30% waiver on remaining tax arrears if settled in installments.
- Settlement Options: Taxpayers can choose to address arrears for specific assessment years, provided all dues for that year are included.
- Deadline for Opting In: Taxpayers must opt for the Amnesty Scheme by August 31, 2022.
Payment Plans
For those choosing to pay their arrears in installments:
- The first installment must be at least 20% of the assessed amount and is due within 30 days of notification.
- Subsequent payments can be made in a maximum of 4 installments.
New Demands Post-August 2022
If new tax demands arise after August 31, 2022, options must be exercised within 30 days of receiving the order. Final payments for these newly generated demands must be completed by December 31, 2022.
Important Dates
- Final Payment Deadline: All payments under the scheme must be completed by December 31, 2022.
- Tax Credits: Taxes or interest paid after receiving a demand notice will be credited towards the outstanding tax.
Eligibility for the Scheme
Taxpayers who did not settle their dues under prior amnesty schemes are still eligible. Any amounts paid in previous schemes will be credited before calculating new arrears under the Amnesty Scheme 2022.
For those who have compounded offenses and made tax payments under those proceedings, credits will likewise apply towards taxes before settling arrears under this scheme.
Limitations
- No refunds will be permitted under the Amnesty Scheme 2022.
- The scheme applies to outstanding dues under the Kerala General Sales Tax Act only up to April 1, 2005. For arrears from April 1, 2005, to March 31, 2022, the principal and interest must be paid, although penalties will be fully waived.
This Amnesty Scheme serves as a valuable opportunity for taxpayers to resolve outstanding liabilities and avoid further complications associated with accruing penalties and interest.