Union Finance Minister Nirmala Sitharaman on Friday called for speedy closure of investigations, measures to prevent tax evasion and wrongful input tax credit claims, and underlined the need to make the “GST registration process easier, seamless, and more transparent” for taxpayers. Chairing a conclave with senior field officers from Customs, Goods and Services Tax (GST) and Central Board of Indirect Taxes and Customs (CBIC), she also stressed on the need for zone-specific action plans to improve upon various parameters such as GST registration, processing of refunds, and handling taxpayers’ grievances.
The wide-scale evasion under the GST regime, the need to reduce the gap between detection and recovery during investigations featured as the key discussion points in the meeting of officers from the Central. More technology-linked and risk-based compliance measures were also stressed upon during the meeting, officials said.
As per the Ministry, GST audit coverage rose to 88.74 per cent in FY 2024-25. Detected GST evasion stood at Rs 2.23 lakh crore in FY25, with voluntary payments totalling at Rs 28,909 crore.
Customs and GST officers were asked to undertake analysis on detection and recovery and to seek solutions to reduce the gap between detection and recovery, a statement from the Ministry of Finance said. “The CBIC was urged by the Finance Minister to expedite the processing of GST and Customs refunds to ensure timely redressal and ease of doing business, especially for MSMEs and exporters,” it said.
Officers have been urged to reduce dwell time at seaports, airports, and Inland Container Depots (ICDs) for both imports and exports, with emphasis on faster cargo clearance. The Union Finance Minister also directed the central GST formations to launch targeted awareness campaigns among taxpayers, trade associations, and industry bodies about 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,” the statement said.
Ahead of the conclave, field officers were asked to submit details regarding pending refunds, investigations, adjudications, litigation along with the number of frauds and recoveries. In a series of missives sent to the field officers last week, the CBIC and CBDT had sought detailed information regarding the pendency claims, pending refunds, frauds, investigations and the cases stuck in litigation. The Central Board of Direct Taxes (CBDT) will host a similar session with its field officers on June 23.
