The upcoming Budget 2025-26 is expected to include an Amnesty Scheme for customs, aimed at addressing long-standing litigation and enhancing ease of doing business. Below are the key aspects of the proposed scheme:
Key Details of the Potential Amnesty Scheme
| Aspect | Details |
|---|---|
| Objective | Reduce litigation in customs matters and foster ease of doing business. |
| Industry Demand | Long-standing demand to address pending pre-GST legacy tax disputes. |
| Pending Cases | Over 40,000 customs-related cases across courts and tribunals. |
| Previous Schemes | Amnesty schemes previously introduced for excise, service tax, and income tax, but not for customs. |
| Expert Suggestions | – Implement a one-time dispute resolution scheme under Customs Law. – Reduce taxpayer and judicial system burden from prolonged litigation. |
| Government’s Focus | – Resolve long-drawn litigation. – Modernize customs laws to match technological advancements and global standards. |
| Expected Announcement | Finance Minister Nirmala Sitharaman may introduce the scheme in Budget 2025-26 as part of the government’s litigation reduction strategy. |
Why the Amnesty Scheme Matters
- Industry Relevance: The scheme is crucial for industries affected by legacy tax disputes, enabling them to focus on operations without the overhang of legal uncertainties.
- Judicial Impact: Easing the burden on courts and tribunals could accelerate resolution of other pending cases.
- Alignment with Goals: The initiative aligns with India’s vision to simplify tax structures and improve business environments.
The announcement of this scheme, if made, could be a transformative step towards clearing backlogs, improving compliance, and reinforcing trust between businesses and the government.
This development is highly anticipated, reflecting both the government’s focus on litigation reduction and the industry’s pressing demands for systemic reforms.
Glottis Limited 
Leave a comment