FM Sitharaman to take stock of tax issues: Depts seek data from field offices

Tax Authorities Face Scrutiny in Upcoming Conclave

India's tax authorities are bracing for a high-level review. Finance Minister Nirmala Sitharaman will hold separate meetings with the Central Board of Direct Taxes (CBDT) on June 23rd and the Central Board of Indirect Taxes and Customs (CBIC) on June 20th, following two-day conclaves (June 19-20 for CBIC, June 23rd for CBDT). These meetings aim to address critical issues impacting taxpayers.

Key areas under the microscope include:

• Refund Processing: Significant attention will be paid to delays in issuing refunds, particularly for exports and SEZ-linked businesses. Delays exceeding 60 days will be thoroughly investigated, with field offices required to provide detailed analysis of pending and rejected refunds.
• Investigations: The high number of pending investigations, especially those exceeding 180 days within the Directorate General of GST Intelligence (DGGI), will be a major focus. The conclave will delve into reasons for delays and seek strategies for faster resolutions.
• Litigation: Addressing the mounting backlog of tax litigation is a key priority. The review will examine the age-wise pendency of appeals and seek improvements in litigation management to reduce the burden on the system.
• Cargo Clearance: The efficiency of cargo clearance at ports and airports will be assessed, with a focus on reducing dwell times.
• Systems and Processes: The effectiveness of current systems and processes for handling tax-related matters will be evaluated, identifying areas for improvement and streamlining to improve taxpayer experience.

Data Demands and Fraud Detection:

In preparation for the conclave, the CBIC and CBDT have issued detailed requests for information to their field offices. These requests cover a broad range of data points, including:

• Pending refunds and claims.
• Fraud investigations: This includes a specific focus on networks of fake firms managed by single masterminds, aiming to identify and close loopholes in the GST registration process. The authorities are seeking detailed information on how these masterminds obtained registration and how to prevent future occurrences.
• Investigation timelines: Detailed data on the number of completed investigations, average completion times, and reasons for pending investigations (broken down by timeframe) are required.
• Recoveries: Information on recoveries made during and after investigations, including details of pending adjudications, will be scrutinized.

The goal of this comprehensive review is to improve efficiency, reduce pendency, and enhance the overall taxpayer experience within India's tax system.