Tax Amnesty and Policy Innovation: Assessing the Case of Vivad Se Vishwas Scheme in India

This paper examines India’s Vivad Se Vishwas (VSV) scheme as an innovative approach to tax dispute resolution, analysing its design, implementation, and outcomes via quantitative analysis of government data and qualitative assessment of policies. The study investigates how blending elements of tax amnesties with judicial dispute resolution addresses the persistent challenge of tax litigation in developing economies. By comparing the scheme’s two iterations (2020 and 2024) and benchmarking against international counterparts, the research highlights India’s distinctive approach to reducing case backlogs while ensuring revenue recovery. The analysis reveals critical insights about the scheme’s operational framework, including its tiered settlement structure, while identifying implementation challenges that emerged during execution. The paper contributes to broader theoretical discussions about policy innovation in tax administration, particularly the balance between immediate dispute resolution and long-term systemic reforms. These findings offer valuable lessons for policymakers designing similar interventions in jurisdictions facing comparable tax litigation burdens.