FM Nirmala Sitharaman asks GST officers to leverage tech to plug loopholes, better taxpayer services

Finance Minister Nirmala Sitharaman on Monday urged GST officers to use technology to close loopholes and improve taxpayer services. The finance minister, who inaugurated the first-ever National Conference of Enforcement Chiefs of State and Central GST Formations, advocated for the sharing of emerging best practices, emphasising the importance of seamless coordination across states in the larger national interest.

An official statement issued after the meeting said, "The Union Finance Minister urged all the GST formations to leverage technology to plug the loopholes as well provide better taxpayer services."

She also emphasised the importance of establishing clarity on the classification of related issues as soon as possible through appropriate channels.

Sitharaman also urged GST officials to meet with stakeholders to better understand their concerns, improve compliance, streamline processes, and collaborate to make the tax system more transparent and efficient.

Sitharaman emphasised the importance of holding such meetings on a regular basis among the Centre's and states' enforcement chiefs, as well as leveraging this platform for discussing obstacles, exchanging successful strategies, and working together to build a more robust and harmonious tax infrastructure.

Sanjay Malhotra, Revenue Secretary, emphasised the importance of enforcement in ensuring the GST system's success.

Union Finance Minister Smt. @nsitharaman inaugurates the inaugural edition of National Conference of Enforcement Chiefs of the State and the Central GST Formations in New Delhi

FM Smt. @nsitharaman exhorts GST officials to engage with stakeholders to understand their… pic.twitter.com/bCG3ufatWw

— Ministry of Finance (@FinMinIndia) March 4, 2024

Malhotra outlined key priorities, including targeting high-risk areas, combating tax evasion, balancing enforcement with taxpayer rights, strengthening collaboration between central and state authorities, and gathering feedback to improve policy and technological interventions.

Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes and Customs (CBIC), stated that fake entities and GST evasion not only reduce revenue, but also distort fair competition and fuel an underground economy.

He emphasised the importance of strong data analytics, the use of technology, and staying ahead of the perpetrators of GST evasion.

Agarwal also reminded the officers to follow the instructions issued by the CBIC regarding the procedure to be followed during enforcement action.

Since May 2023, a nationwide crackdown on fake registrations and bogus billing has resulted in the detection of ITC tax evasion totaling Rs 49,623 crore, involving 31,512 bogus firms.

From 2020 to the present, CBIC officers have detected fake ITC evasion of Rs 1,14,755 crore.

During the conference, Maharashtra state GST officers stated that they had identified 41,601 suspected non-genuine taxpayers, with 6,034 NGTPs detected based on various intelligence gathered during registration, e-way bills, and inputs from CBIC/other states, and outlined steps taken to improve detection rates at an early stage.

(With Agency Inputs)