March 2025 Newsletter: GST Amnesty Scheme & Vivad Se Vishwas 2.0 – A Guide to Tax Dispute Resolution

The March 2025 edition of CoralMetrix's "Crack the Code" newsletter focuses on two important opportunities available to taxpayers: the GST Amnesty Scheme under Section 128A and the Vivad Se Vishwas Scheme 2.0. Both initiatives are designed to reduce litigation, encourage voluntary compliance, and help taxpayers settle long-pending tax disputes efficiently.

GST Amnesty Scheme: Relief for Pending GST Disputes

The GST Amnesty Scheme, introduced through Section 128A of the CGST Act, provides eligible taxpayers with a conditional waiver of interest and penalties relating to notices issued for FY 2017-18, 2018-19, and 2019-20. The scheme was introduced to reduce litigation and facilitate faster resolution of historical GST disputes.

Businesses seeking relief under the scheme must complete the prescribed application process before the applicable timelines. The newsletter provides a practical step-by-step guide to filing applications through the GST portal.

Key Highlights of the Amnesty Scheme

• Applicable to specific GST notices and demand orders.

• Waiver of eligible interest and penalty amounts.

• Online filing through prescribed forms.

• Support for both portal-generated and manually issued orders.

• Requirement to withdraw pending appeals in certain situations before availing benefits.

• Mandatory submission of supporting documentation and payment details.

For businesses with legacy GST disputes, the scheme presents a valuable opportunity to close pending matters and improve compliance certainty.

Step-by-Step Filing Process Under GST Amnesty

The newsletter explains the application process in detail, including:

1. Creating the application on the GST portal.

2. Selecting the appropriate demand order details.

3. Declaring appeal status and withdrawal information where applicable.

4. Entering demand and payment details.

5. Mapping DRC-03 payments against demand orders.

6. Uploading supporting documents.

7. Filing the application using DSC or EVC authentication.

Proper completion of these steps is essential to ensure successful processing of applications under the scheme.

Vivad Se Vishwas Scheme 2.0: Resolving Income Tax Litigation

The Government has also introduced Vivad Se Vishwas Scheme 2.0 to provide taxpayers with an opportunity to settle pending income tax disputes. The scheme applies to various appeals and proceedings pending before appellate forums as of the specified cut-off date.

The objective is straightforward: reduce litigation, expedite dispute resolution, and provide certainty to taxpayers and tax authorities alike.

Who Can Benefit?

The scheme covers disputes pending before:

• Income Tax Appellate Tribunal (ITAT)

• High Courts

• Supreme Court

• Commissioner (Appeals)

• Joint Commissioner (Appeals)

• Dispute Resolution Panel (DRP)

• Revision applications under Section 264 of the Income Tax Act

In specific cases where appeals have been filed by tax authorities or earlier rulings favored the taxpayer, additional concessions may be available.

Important Forms Under Vivad Se Vishwas 2.0

The scheme requires taxpayers to follow a structured filing process through designated forms:

• Form 1 – Declaration and Undertaking

• Form 2 – Certificate issued by the Designated Authority

• Form 3 – Intimation of Payment

• Form 4 – Final Settlement Order

Each dispute requires separate declarations, and proof of withdrawal of appeals may be required before final settlement.

Why These Schemes Matter

Both the GST Amnesty Scheme and Vivad Se Vishwas 2.0 reflect the government's continued focus on reducing tax litigation and improving ease of compliance.

Benefits include:

• Faster dispute resolution

• Reduced interest and penalty exposure

• Lower litigation costs

• Improved cash flow certainty

• Closure of long-pending tax matters

• Better compliance management for businesses and professionals

Organizations should carefully evaluate pending disputes to determine whether these schemes provide a cost-effective settlement opportunity.

CoralMetrix Updates & Professional Engagement

The March newsletter also highlights several important CoralMetrix initiatives, including:

• Budget 2025 webinar covering GST and Income Tax developments.

• Industry session on GST issues affecting Resident Welfare Associations (RWAs).

• Advanced Microsoft Excel training attended by team members.

• Expansion into legal and advisory services through the launch of a new office under Raman Law Chambers and CoralMetrix Advisory Pvt. Ltd.

These initiatives demonstrate CoralMetrix's commitment to continuous learning, client education, and service expansion.

Conclusion

March 2025 brings significant opportunities for taxpayers seeking to resolve historical GST and income tax disputes. The GST Amnesty Scheme and Vivad Se Vishwas Scheme 2.0 provide practical pathways to reduce litigation exposure, improve compliance, and achieve tax certainty. Businesses should assess their eligibility and take timely action to maximize available benefits.

Read More

Read the complete newsletter for detailed filing procedures, eligibility conditions, payment structures, practical guidance, and expert insights.