Objectives Of Settlement Commission :

The basic objectives of setting up of the Settlement Commission are:-

i. to provide an alternate channel for dispute resolution for the taxpayer;

ii. to expedite payment of GST involved in disputes by avoiding costly and time consuming litigation process;

iii. to provide an opportunity to tax payers to come clean who may have evaded payment of tax;

iv. to serve as a forum for the taxpayer to apply for settlement of their cases, on the basis of true and complete disclosure of their tax liability;

v. to encourage quick settlement of disputes and save the business from the worries of prosecution in certain situations.

In the Model GST Law, the provisions for Settlement Commission are incorporated only under the IGST Act (sections 11 to 26). This implies that cases cannot be settled in relation to tax liability of CGST/SGST Act. However, there is a possibility that those state tax administrations which want to constitute Settlement Commission can do so on thebasis of the template provided under the IGST Act and the CGST Act can have an enabling provision drawing from the IGST Act for such states.