Streamline GST Registration, Minimize Tax Evasion: Finance Minister
In an spirited move to alleviate business woes, Finance Minister Nirmala Sitharaman has gone toe-to-toe with the Central Board of Indirect Taxes and Customs (CBIC) to streamline the Goods and Services Tax (GST) registration process, fast-track grievance redressal, and throw a lifeline to MSMEs and exporters by expediting GST refunds.
FE Bureau Follow Us On Friday, Nirmala Sitharaman delivered an impassioned plea to the CBIC for more action on refining GST registration and grievance redressal, urging a speedier investigation closure in Customs and GST cases to thwart tax evasion.
Citing their presentation, the CBIC admitted that GST evasion detection had swelled to a staggering ₹2,23,170 crore in 2024-25, with voluntary payments totaling ₹28,909 crore.
The minister also imposed a gun to the head on the board to take extra steps to thwart wrongful input tax credit (ITC) claims, provide prompt attention to public grievances channeled through the centralized public grievance redress and monitoring system (CPGRAMS), and trim the wheels of imports to facilitate quicker business transactions.
HRA and Home Loan SplittingThe CBIC has made significant strides in grievance resolution, with the average disposal time slashed down to 9 days – a remarkable achievement compared to the stipulated 21-day timeline. Impressively, 95% to 97% of CPGRAMS appeals are now being settled within 30 days, placing the CBIC among the top 5 Central Ministries in CPGRAMS rankings since February 2024.
While addressing the CBIC conclave with principal chief commissioners, chief commissioners, and director-generals of field formations, the minister demanded a quicker closure of Customs and Central GST investigations and encouraged an analysis on detection and recovery to unearth solutions to reduce the gap between detection and recovery.
Your Queries: Loans - ITR Filing After Belated Return Cut-OffPleased with the progress, the minister underlined the need for expediting GST and customs refunds for MSMEs and exporters to ensure that the easiness of doing business in India remains unhampered. Thus far, about 85% of claims have been processed within the statutory 60-day limit.
To stoke the flames of trade, Sitharaman urged the Customs to lend a hand by trimming the time cargo spends at the country's seaports, airports, and Inland Container Depots (ICDs) for both imports and exports. By expediting cargo clearance, Sitharaman believes businesses can secure a stronger foothold in the global trade arena.
Enrichment:In response to the Finance Minister's directives, the CBIC has put the pedal to the metal to streamline the GST registration process through the use of technology and a risk-based approach, targeted awareness campaigns for taxpayers about mandatory documentation, and the setup of helpdesks at CGST zones.
The board has demonstrated commendable progress in expediting GST and customs refunds for MSMEs and exporters, with 85% of claims processed within the statutory 60-day period. Moreover, they have made strides in improving grievance redressal mechanisms and reducing cargo dwell time for a more competitive trade environment.
To stay ahead of the game, Sitharaman has also lobbied for ensuring efficient administration in the CBIC by expediting disciplinary proceedings, filling vacant posts, and addressing staffing concerns. These efforts signal the government's commitment to fostering a business-friendly environment that boosts the nation's trading prowess.
In line with the Finance Minister's efforts to streamline processes and foster a business-friendly environment, a push has been initiated within the CBIC to expedite GST refunds for MSMEs and exporters, aligning with the minister's target of ensuring that the ease of doing business in India remains unhampered. Additionally, in response to the minister's call, the CBIC is also working to boost finance market operations by reducing cargo dwell time at seaports, airports, and Inland Container Depots (ICDs) for both imports and exports.
