In what could be a breather for the taxpayers, especially the industry, on the issues related to tax disputes, sources told CNBC-TV18 that the GST Council is likely to reduce the amount of pre-deposit to enter the appeals stage.

Sources said, “The GST Council is likely to rationalise the pre-deposit amount to be paid while entering the first and second stage of appeal.”

The proposal in front of the GST Council is to reduce the “quantum of pre-deposit for filing an appeal with the appellate authority at 10% of disputed tax or a maximum of ₹20 crores each in CGST and SGST and ₹40 crore for IGST”, the sources told CNBC-TV18.

Similarly, the “quantum of pre-deposit to be paid for filing appeals in the appellate tribunal should be reduced to 10% of disputed tax or max Rs. 20cr CGST & SGST and Rs 40 cr for IGST,” they said.

The GST Council is also likely to pave the way for a breather for the industry from retrospective demands, where due to lack of clarity, the industry had been paying taxes at a different rate, as against what the government prescribed in black and white later on.

Source: CNBC TV 18