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Informist, Thursday, Dec. 5, 2024

--Govt source: Planning customs amnesty scheme for 1-time dispute settlement

--Govt source: May OK customs amnesty plan in FY26 Budget if details firm up

By Priyasmita Dutta and Sagar Sen

NEW DELHI – After numerous requests from industry, the government is working on a one-time amnesty scheme for customs to settle old disputes, a senior finance ministry official said. "The ministry is working on it and the contours are being finalised," the official told Informist on condition of anonymity.

The amnesty scheme is expected to provide relief to importers by allowing them a window to end old cases and settle disputes related to the Customs Act, and depending on the quantum being disputed, penalties may be waived. According to the official quoted earlier, if the details of the scheme are finalised in the next couple of months, it might be announced in the Union Budget for 2025-26 (Apr-Mar).

Industry bodies, including the Federation of Indian Chambers of Commerce & Industry, the Associated Chambers of Commerce and Industry of India, the Confederation of Indian Industry, and the PHD Chamber of Commerce and Industry have repeatedly pushed for such a scheme so that small and medium enterprises in particular can get some relief. The evolution of customs duties and regulations can often lead to disputes that persist for extended periods, exerting financial strain on businesses and a burden on the judiciary.

Besides reducing litigation, amnesty schemes also help fill the government's coffers. In FY25, the Centre expects to collect INR 2.377 trillion from customs duty. In the first seven months of the year, it had collected INR 1.321 trillion.

The government has previously launched similar schemes to resolve direct tax cases--called 'Vivad Se Vishwas'--as well as those related to the erstwhile Central Excise and Service Tax through the 'Sabka Vishwas (Legacy Dispute Resolution) Scheme’. This year, it launched another such scheme for Goods and Services Tax demands, under which interest and penalty is waived for non-fraud cases for the years FY18-FY20.  End

Edited by Avishek Dutta

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