Union Budget 2023-24: Vivad se Vishwas Scheme I
The Vivad se Vishwas Scheme is a dispute resolution scheme introduced by the Indian government to reduce the number of direct tax litigation cases. The scheme was launched to provide relief to Micro, Small, and Medium Enterprises (MSMEs) during the COVID-19 period.
The Union Finance Minister Smt. Nirmala Sitharaman announced the Vivad se Vishwas scheme in the Union Budget 2023-24. Ministries have been requested to reimburse performance security, bid security, and liquidated damages that were forfeited or deducted throughout the COVID-19 pandemic as part of the scheme. Additionally, MSMEs that were debarred for default in the execution of contracts during the COVID-19 period have been provided with relief.
Eligibility Criteria & Requirements to Apply for Vivad se Vishwas Scheme
The following outlines the eligibility criteria & requirements to apply for the Vivad se Vishwas Scheme, which aims to offer relief to MSMEs during the COVID-19 period:
- As of March 31, 2022, the registration of the supplier or contractor with the Ministry of MSME as an MSME is required.
- The initial timeframe specified for the contract’s completion or delivery was from February 19, 2020, to March 31, 2022.
- Valid Permanent Account Number (PAN)
- Date of Incorporation/Registration of Business
- CIN (Corporate Identification Number)
- GSTIN (Goods and Services Tax Identification Number)
- Bank account details
- MSME Registration from Udyam portal
- Details of the disputed tax amount
- Details of the tax arrears
- Details of the tax demand raised
- Details of the tax paid
- Details of the tax refund claimed
- Details of the tax credit availed
- Details of the tax deducted at source (TDS) and tax collected at source (TCS)
- Details of the tax collected but not deposited
- Details of the tax collected but not paid to the government
Benefits to Eligible MSMEs in Vivad se Vishwas Scheme
Given below are the additional benefits to eligible MSMEs, affected during the COVID-19 period:
- Access to institutional financing
- 95% Refund of performance security, bid security, and liquidated damages forfeited/deducted during the COVID-19 pandemic.
- 95% of the Risk Purchase amount realized shall be refunded.
- Scheme provides relief to MSMEs during the COVID-19 period and aims to ease the financial burden on them and promote their growth.
- If a firm has been debarred only due to default in the execution of contracts, the procuring entity shall revoke such debarment by issuing an appropriate order. However, If a firm has been debarred during the interim period and has not been considered for a contract, i.e. date of debarment and revocation, any claim made by the firm will not be accepted.
- Interest will not be paid on the refunded amount.
Raise a Claim Through the Government e-Marketplace (GeM) Portal
The Vivad se Vishwas Scheme will grant refunds through an online portal facilitated by the Government e-Marketplace (GeM). MSME vendors need to register on the GeM portal in order to raise a claim. Claims that meet the requirements will be processed only through GeM Portal.
Last date to submit the claim under the Vivad se Vishwas Scheme
The Vivad se Vishwas scheme was commenced on 17.04.2023 and the last date for submission of claims is 30.06.2023.