The Sabka Vikas Scheme, also known as the Legacy Dispute Resolution Scheme, has been implemented by the Government of India to help citizens settle their tax disputes. Launched in 2019, this program aims to provide substantial relief to taxpayers who wish to resolve their pending issues concerning indirect taxes.
Overview of the Sabka Vikas Scheme
In the Union Budget of 2019, the Sabka Vishwas Scheme was introduced with an objective to settle disputes related to Service Tax and Central Excise Acts, which are now included under GST. The scheme focuses on individuals and entities keen to settle their outstanding dues with the government without incurring additional penalties. This initiative officially commenced on 1st September 2019 and was initially set to conclude on 31st December 2019. However, updates on its provisions remain relevant for 2025.
Penalty Updates Related to Sabka Vikas Scheme 2025
Recently, a local resident challenged the scheme, arguing that the accumulated interest on pending tax amounts should be incorporated within the scope of the scheme. However, the tax department has dismissed this claim and issued a rejection order, stating that the scheme does not apply in cases where the total liability consists solely of interest. Consequently, several companies have opted out of this settlement offer concerning unresolved interest disputes.
Key Features of Sabka Vikas Scheme 2025
| Name | Sabka Vikas Scheme |
| Launched by | Government of India |
| Objective | Providing tax exemptions |
| Beneficiaries | Indian citizens |
| Official Site | https://cbic-gst.gov.in/sabka-vishwas.html |
Benefits of the Sabka Vikas Scheme 2025
The Sabka Vikas Scheme offers several benefits, which include:
- Taxpayers can clear outstanding dues and be exempt from further legal consequences.
- Beneficiaries receive significant relief in the form of waivers on interest, penalties, and fines.
- Complete immunity from prosecution is provided under the scheme.
Eligibility Under the Scheme
Individuals and entities eligible to participate in the scheme include cases such as:
- Show-cause notices or appeals pending as of 30th June 2019
- Any outstanding tax balances
- Inquiries, investigations, or audits where tax amounts were determined before 30th June 2019
- Voluntary disclosures initiated by taxpayers
Exclusions from the Scheme
Not all cases fall under the purview of the Sabka Vikas Scheme. The following exclusions apply:
- Excise goods mentioned in the Fourth Schedule of the Central Excise Act, 1944 (which includes tobacco and specific petroleum products)
- Cases where taxpayers have been convicted under the Central Excise Act, 1944 or the Finance Act, 1944
- Issues involving erroneous refunds
- Cases currently pending before the Settlement Commission
Reliefs Offered by the Sabka Vikas Scheme 2025
The types of relief which can be availed through the scheme include:
| Relief from Duty Demand | Pending Adjudication or Appeals* | Confirmed Duty Demands (Without Pending Appeals) | Cases of Voluntary Disclosure |
| Duty demands up to Rs.50 lakh | 70% | 60% | Full amount of duty disclosed |
| Duty demands exceeding Rs.50 lakh | 50% | 40% |
This comprehensive understanding of the Sabka Vikas Scheme offers valuable insights for taxpayers looking to benefit from the legacy dispute resolution framework, reinforcing the government’s commitment to easing taxpayer burdens while ensuring compliance with tax regulations.