Finance Minister Nirmala Sitharaman has called on the Central Board of Indirect Taxes and Customs (CBIC) to streamline the GST registration process and enhance grievance redressal for taxpayers.1 These directives were issued during a recent CBIC Conclave.2
Key Directives and Areas of Focus
Sitharaman’s instructions focused on several crucial areas:
- Simplifying GST Registration:
- The aim is to make registration easier, seamless, and more transparent using technology and risk-based parameters.3
- CBIC has been asked to launch targeted awareness campaigns for taxpayers and industry bodies regarding required documentation, especially for the principal place of business.4 This should help reduce rejections and delays.5
- Dedicated helpdesks for GST registrations in CGST zones will be set up to assist taxpayers.6
- GST Seva Kendras and Customs Turant Suvidha Kendras must be well-staffed, accessible, and properly maintained to provide timely assistance.7
- In response, CBIC has already issued Instruction No. 03/2025-GST, standardizing the registration process and setting faster approval timelines (7 working days for standard applications, 30 days for risk-flagged/Aadhaar not verified cases with physical verification).8 This instruction also prohibits irrelevant queries from officers.9
- Enhancing Grievance Redressal:
- There’s a strong emphasis on timely resolution of queries and complaints through improved systems and accountability.10
- CBIC has established a formal grievance redressal mechanism (Instruction No. 04/2025-GST), allowing applicants to contact jurisdictional zonal Principal Chief Commissioners via email for registration-related issues.11 Monthly reports on grievance redressal status are now mandatory.12
- Preventing Tax Evasion and Wrongful ITC Claims:
- Sitharaman stressed the need to prevent tax evasion and wrongful Input Tax Credit (ITC) claims.
- She also called for speedy closure of investigations in Customs & CGST cases and an analysis to bridge the gap between detection and recovery.13
- Expediting Refunds:
- CBIC has been urged to accelerate the processing of GST and Customs refunds to ensure timely redressal and ease of doing business, particularly for MSMEs and exporters.14
- Addressing Vacancies and Disciplinary Matters:
- The Finance Minister directed the expeditious conclusion of disciplinary proceedings against officials.15
- CBIC was also urged to fill all vacant posts promptly across various levels to strengthen field formations and improve administrative efficiency.16 As of September 1, 2024, over 38% of sanctioned posts in CBIC (excluding SEZs) were vacant.
CBIC Performance Highlights (FY25)
The CBIC’s recent performance data shows positive trends:
- GST Evasion Detected: Over ₹2.23 lakh crore, with voluntary payments reaching ₹28,909 crore.
- Audit Coverage: Increased to 88.74% in FY25 from 62.21% in FY23.17
- GSTR-3B Filing: National average stood at 94.3% in FY25.
- Refund Processing: 85% of indirect tax claims were processed within the statutory 60-day limit.18
- Grievance Disposal: Average time reduced to just 9 days, significantly better than the stipulated 21-day timeline.19
- CPGRAMS Appeals: Between 95% and 97% were disposed of within 30 days.
- Taxpayer Audit: Zero taxpayers were audited more than once in three years.
These directives underscore the government’s commitment to improving the business environment and fostering taxpayer trust while actively combating tax evasion.