FM Sitharaman tells CBIC to simplify GST registration further, crackdown on tax evasion

New Delhi, June 20 (IANS) Finance Minister Nirmala Sitharaman on Friday asked the Central Board of Indirect Taxes and Customs (CBIC) to take further measures to simplify GST registration, ensure speedy closure of investigations for Customs & CGST cases, and prevent tax evasion and wrongful Input Tax Credits (ITC) claims. Addressing the CBIC conclave here, she also directed the field formations to expedite grievance redressal and promptly address public grievances received through CPGRAMS, and reduce dwell time for imports.

The Finance Minister directed the zonal commissioners to prepare an action plan to improve various parameters such as GST registration, processing of refunds, and handling taxpayers’ grievances.

She stressed the need to make the GST registration process easier, seamless, and more transparent for taxpayers, with the use of technology and risk-based parameters.

Sitharaman 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. She emphasised that this would help reduce rejections and delays in registration and enable faster processing of applications. She also asked CGST zonal heads to have a dedicated helpdesk for GST registrations to facilitate the taxpayers in the application process.

The Finance Minister highlighted the need to ensure that GST Seva Kendras and Customs Turant Suvidha Kendras are well-staffed, accessible, and properly maintained, so that taxpayers receive timely and quality assistance.

She also called for the speedy closure of investigations for Customs & CGST cases, and exhorted for an analysis on detection and recovery, and to seek solutions to reduce the gap between detection and recovery. At the same time, she emphasised the need for preventing tax evasion and wrongful Input Tax Credits (ITC) claims.

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.

On the first day of the CBIC Conclave, Union Minister of State for Finance Pankaj Chaudhary addressed and also launched the ICETAB device for export examination, which aims to reduce the transaction cost and turnaround time for trade, thereby improving India's ranking in the Logistics Performance Index (LPI).

During the conclave, presentations highlighted the performance of Customs and CGST zones on key indicators. It was highlighted that the average time for grievance disposal has been reduced to just 9 days, significantly better than the stipulated 21-day timeline.

It was mentioned that the national average for GSTR-3B filing stood at 94.3 per cent in FY 2024–25, and 85 per cent of refund claims were processed within the statutory 60-day limit.

Besides, the detection of GST evasion grew to Rs 2,23,170 crore in FY 2024–25, with voluntary payments totalling Rs 28,909 crore. It was also noted that the number of taxpayers who were repeated for audit more than once in 3 years is zero.

The Finance Minister urged the Customs to reduce dwell time at seaports, airports, and Inland Container Depots (ICDs) for both imports and exports, and emphasised that faster cargo clearance is crucial to enhance India’s global trade competitiveness and ease of doing business.

Taking note of pending disciplinary matters, the Finance Minister directed that disciplinary proceedings against the officials at different levels be concluded expeditiously in a time-bound manner.

The CBIC was also urged to fill all vacant posts at the earliest, across various levels, to strengthen field formations and enhance administrative efficiency.

Sitharaman encouraged Chief Commissioners and DGs to actively undertake trade facilitation measures within their jurisdictions and to submit actionable suggestions to CBIC Headquarters for further streamlining of procedures.