The Sabka Vishwas (Legacy Dispute Resolution) Scheme 2026 is an initiative by the Government of India to help taxpayers resolve pending disputes related to Service Tax and Central Excise from the pre-GST regime.
The scheme allows taxpayers to settle legacy tax cases by paying reduced tax dues while receiving relief from penalty, interest, and prosecution.
Below are the frequently asked questions about the Sabka Vishwas Scheme.
A person can file a declaration if they fall under the following categories:
A person with a Show Cause Notice (SCN) pending where the final hearing has not taken place before the specified cut-off date.
A person issued SCN for penalty or late fee only.
A person having recoverable tax arrears.
A person whose case is under investigation, enquiry, or audit where the duty involved has already been quantified.
A person who wants to make a voluntary disclosure of unpaid tax liabilities.
The scheme covers disputes arising under various indirect tax laws including:
Central Excise Act, 1944
Central Excise Tariff Act, 1985
Chapter V of the Finance Act, 1994 (Service Tax)
It may also apply to certain other indirect tax enactments notified by the Central Government.
No. If the duty amount has not been quantified before the prescribed date, the person is not eligible to opt for the scheme.
No. The declaration must cover the entire tax dues mentioned in the Show Cause Notice.
If the SCN includes only penalty or late fee, the scheme provides full waiver of such penalty or late fee.
No. If the final hearing has already taken place before the specified cut-off date, the person is not eligible for the scheme.
No. Such cases are generally not eligible under the Sabka Vishwas Scheme.
No. A person convicted under any indirect tax law for the same matter cannot avail the benefits of the scheme.
No. Cases involving erroneous refunds are not eligible under the scheme.
No. Voluntary disclosure cannot be made if investigation, enquiry, or audit is pending for the same matter.
Eligible taxpayers can file an electronic declaration through the official CBIC portal.
Yes. After filing the declaration, the system generates an acknowledgement with a unique reference number.
The Designated Committee will verify the declaration and communicate the final decision electronically within the prescribed time.
Tax Dues refer to the total outstanding tax demand.
Tax Relief refers to the concession provided by the scheme on the total tax demand.
The scheme offers several benefits including:
Complete waiver of interest and penalty
Immunity from prosecution
Reduction in tax dues
Faster resolution of legacy tax disputes
Yes. Any pre-deposit or deposit paid during investigation or audit will be deducted while calculating the payable amount.
The declaration will be verified by the Designated Committee based on the information provided by the declarant and the records available with the department.
Yes. The declarant may be given an opportunity of being heard in case of any disagreement with the estimated payable amount.
The declarant must pay the amount determined by the Designated Committee within 30 days of the statement issued.
Appeals filed before appellate authorities may be deemed withdrawn once the declaration is filed and accepted.
Yes. After payment of the determined amount, the Designated Committee will issue a Discharge Certificate electronically.
Yes. Any clerical or calculation errors can be corrected within the specified period.
Once issued:
The taxpayer will not be required to pay any further tax, interest, or penalty for that matter.
The taxpayer receives immunity from prosecution.
The dispute will be considered fully settled.
No. Input tax credit cannot be claimed for payments made under the scheme.
No. Payments must be made in cash through the prescribed electronic mode.
No. Any amount paid under the scheme cannot be refunded.
The excess amount will not be refunded.
No. Immunity is limited only to the matter and period mentioned in the declaration.
Yes. A new SCN may still be issued for:
A different matter, or
A different time period.
If any information provided in the declaration is found to be false within one year, the declaration may be treated as invalid and legal proceedings may be initiated under the applicable tax laws.
At IndianSalahkar, we help businesses and taxpayers with:
Sabka Vishwas Scheme consultation
Legacy tax dispute resolution
Documentation and declaration filing
Settlement of Service Tax and Central Excise disputes
Our experts ensure smooth compliance and proper guidance throughout the process.