• Notification Date: 02-05-2023
• Notification No: N/A

Bring Automated GST Return Scrutiny System by Next Week: Sitharaman asks CBIC

In a review meeting with the Central Board of Indirect Taxes & Customs (CBIC) on Saturday, Finance Minister Nirmala Sitharaman asked the tax authorities to introduce an automated GST return scrutiny system by next week. She also urged the indirect tax department to do a comprehensive study of the typology of cases to intensify the drive against fake billing/input tax credit under the Goods and Services Tax (GST) regime and take measures to increase the taxpayer base. 

The total Indirect tax collections for the financial year 2022-23 stood at Rs 13.82 lakh crore, up from Rs 12.89 lakh crore in 2021-22 but slightly lower than the revised estimate of Rs 13.85 lakh crore for FY23. 

“The Finance Minister directed CBIC to introduce its automated GST return scrutiny by next week and to implement an action plan to increase the taxpayer base through enhanced use of technology. 

In order to intensify its drive against fake billing/Input Tax Credit (ITC), Smt. Sitharaman desired that CBIC may undertake a comprehensive root cause analysis by studying the typology of cases already booked and come up with recommendations on technology based solutions to address the menace and prevent its occurrence,” a Finance Ministry statement said. 

GST evasion and frauds has emerged as one of the key concerns of tax authorities. With no major GST rate tweaks expected before the general elections next year, in a bid to bolster revenue collections, tax authorities have identified registration-linked frauds as one of the key focus areas for tighter scrutiny in the financial year 2023-24. 

State-wise data for 30-32 sectors is being analysed for such instances of tax evasion. 

The average gross monthly GST collection for 2022-23 stood at Rs 1.51 lakh crore and monthly GST revenue collections exceeded Rs 1.4 lakh crore for 12 months in a row. 

The Finance Minister also emphasised the need for continuously improving taxpayer services. For grievance redressal in each zone, Sitharaman asked for interactions to be organised between members of trade and industry who are part of the GST ecosystem to know their issues and suggestions to systematically identify matters to resolve them. She directed to put in place a system to take feedback on grievances redressed to improve the quality of redressal, the ministry said. 

The comprehensive review covered a variety of work areas, including trade facilitation, taxpayer services, grievance redressal of the trade, finalisation of disciplinary cases and infrastructure projects. 

The review meeting was attended by the Revenue Secretary, CBIC Chairman and board members.