• Notification Date: 03-05-2023
• Notification No: N/A

CBIC Plans Automated Scrutiny of GST Returns

An automated goods and services tax (GST) return scrutiny is likely soon across the country as the finance ministry has asked the Central Board of Indirect Taxes and Customs (CBIC) to introduce and implement its action plan by next week. Emphasising the need for continuously improving taxpayer services in India, the move of the government aims to increase the taxpayer base in the country via the enhanced use of technology. 

In a review meeting held with the CBIC officials on Saturday, Union finance minister Nirmala Sitharaman, however, has desired that the indirect tax body may undertake a comprehensive root cause analysis of fake billing and input-tax credit claims 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. 

"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. She also directed to put in place a system to take feedback on grievances redressed to improve the quality of redressal," the finance 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, and progress of the upcoming Palasamudram campus of the National Academy of Customs, Indirect Taxes and Narcotics (NACIN). The meeting was attended by the revenue secretary, CBIC chairman and other board members as well. 

During the review meeting, the finance minister also emphasised the need for continuously improving taxpayer services. For grievance redressal, Sitharaman desired that in each Zone interaction be organised with members of trade and industry who are part of the GST ecosystem to know their issues and suggestions to systematically identify matters for working out redress for them. 
As per the government data, the total indirect tax collections for the 2022-23 fiscal stood at Rs 13.82 lakh crore, up from Rs 12.89 lakh crore in 2021-22.