Finance Minister Nirmala Sitharaman is pushing for a simpler, more transparent GST registration process and better handling of taxpayer complaints. She emphasized using technology and risk-based parameters to achieve this, all while cracking down on tax evasion and fraudulent Input Tax Credit (ITC) claims.
Key Directives for CBIC
During a recent conclave with top officials from the Central Board of Indirect Taxes and Customs (CBIC), Sitharaman laid out clear instructions:
- Easier GST Registration: Make the process seamless, transparent, and faster. This includes targeted awareness campaigns for businesses on required documentation, especially for their principal place of business. She also called for dedicated helpdesks for GST registrations and well-staffed GST Seva Kendras and Customs Turant Suvidha Kendras to provide timely and quality assistance.
- Enhanced Grievance Redressal: A sustained focus on resolving taxpayer queries and complaints swiftly, with improved systems and accountability.
- Expedited Investigations and Refunds: Speed up the closure of Customs and CGST investigations and accelerate the processing of GST and Customs refunds, particularly for MSMEs and exporters.
- Boost Administrative Efficiency: Address pending disciplinary matters promptly and fill vacant posts across all levels within CBIC to strengthen field formations.
CBIC’s Performance Snapshot (FY25)
The Finance Minister’s directives build on some already strong performance metrics from CBIC:
- GST Evasion Detected: Over ₹2.23 lakh crore, with voluntary payments of ₹28,909 crore.
- Audit Coverage: GST audit coverage surged to 88.74% from 62.21% in FY23.
- Refund Processing: 85% of indirect tax claims were processed within the 60-day statutory limit.
- Grievance Resolution: Average time for grievance disposal dropped to just 9 days, significantly faster than the 21-day stipulated timeline.
- CPGRAMS Appeals: 95-97% of appeals are resolved within 30 days.
With these measures, the government aims to enhance the ease of doing business in India and foster greater trust and compliance among taxpayers.