FM Nirmala Sitharaman To Chair Meeting With Income Tax, GST, Customs Department; What To Expect?

Finance Minister Nirmala Sitharaman is scheduled to meet senior officers from the income tax, goods and services tax (GST), and customs departments on Monday, June 23. During the meeting, Sitharaman is likely to assess the performance of these departments and address issues related to taxpayers' services, the refund process, etc.

The FM review meeting with multiple departments' officers will also address key issues related to delays in issuing refunds, rectification of cases impacted by system-related issues, etc, reported CNBC-TV 18, citing sources. Here are the key points related to FM Sitharaman's review meeting.

Income Tax Refund Delays

Review of pending income tax refund, especially those pending under Section 143 (1) due to non-processing of returns, delay in approval of cases due to rectification and system-related issues, etc.

Additionally, issues related to tax returns refunds and cases which were pending for long duration because of clerical error are impacted due to IT system-related problems will also be addressed at the review meeting.

Sitharaman will also check and assess the data on pending taxpayer requests and grievances, their average disposal time and unresolved grievances in the department's online system e-Nivaran.

Automated Verification of ITR

The initial processing of ITRs, under Section 143 (1) of the Income Tax Act, by the Centralised Processing Centre (CPC) is an automated process that consists of checking multiple aspects of the return filed, including ITRs. The processing of ITRs may face multiple issues like mismatch in TDS/TCS data, incorrect bank details, etc.

Faster Disposal of Legacy Cases

In addition to addressing issues related to non-processing of returns under Section 143 (1), FM Sitharaman will also review age-wise pendency of appeals to ensure faster disposal of legacy cases. The meeting is also likely to see discussion on pending cases related to vigilance beyond permissible timelines.

Dwell Time Across Cargo Shipments at Ports

FM Sitharaman is also expected to address the long dwell time of cargo clearance across ports and airports with data on risk management system-facilitated clearances and zone-wise examination of timelines, as reported by Financial Express, citing sources.

Tech-Enabled Governance

Another reason on the agenda is boosting efficiency through the advent of tech-enabled governance. FM is likely to encourage officers to opt for efficient practices like e-governance, better technologies, and other operations.

Earlier, the Finance Minister chaired a conclave in New Delhi on Friday, June 20. Sitharaman had chaired a meeting with top officials of the Central Board of Indirect Taxes and Customs. She had also asked people to make GST registration easier, solve public complaints faster, and speed up investigations in Customs and GST cases. She also stressed the importance of preventing tax evasion and fake Input Tax Credit claims, and reducing delays in imports. At the same event, Minister of State for Finance Pankaj Chaudhary launched a new device called ICETAB. This tool will help make export checks quicker and cheaper, which could improve India's performance in global Logistics rankings.

During the conclave, the Union Finance Minister directed the zones to prepare an action plan to improve upon various parameters such as GST registration, processing of refunds, and handling taxpayers' grievances.

The Union Finance Minister also directed the CGST formations to launch targeted awareness campaigns among taxpayers, trade associations, and industry bodies regarding the mandatory documentation required for GST registration, particularly those related to the principal place of business. This, the Union Finance Minister emphasised, would help reduce rejections and delays in registration and enable faster processing of applications. She also directed CGST Zonal Heads to have a dedicated helpdesk for GST registrations to facilitate the taxpayers in the application process.