A senior government official has indicated that the government is poised to conduct a sequence of meetings in November. The purpose is to meticulously assess and enhance various aspects of indirect taxation, especially concerning the GST.
These forthcoming meetings will encompass a comprehensive review not only of the Goods and Services Tax (GST) but also of the overall indirect taxation procedures.
The focus will revolve around brainstorming sessions aimed at identifying opportunities for improvement, evaluating existing processes, and deliberating on internal workflows. Emphasis will be placed on streamlining aspects that require enhancement.
The official highlighted that the discussions will involve a thorough re-evaluation and contemplation of the functionality of the GSTN portal, the effectiveness of indirect tax processes, the simplification of return filing, and the identification and resolution of any technical issues. The GST Network serves as the technological backbone for these processes.
Furthermore, the Central Board of Indirect Taxes and Customs (CBIC) intends to capitalize on this period, given that the impending budget is not a comprehensive one but rather a vote on account, owing to the upcoming general elections slated for the following year.
“As we’re not dealing with a comprehensive budget, it presents an opportune moment to reassess internal processes. Several aspects might be askew, requiring time and attention to realign,” stated the official.
A vote on account budget allows the incumbent government to seek Parliament’s approval to utilize funds from the Consolidated Fund of India to cover expenses until the elections conclude.
The anticipated review meetings will involve top officials from the Central Board of Indirect Taxes and Customs (CBIC), GSTN, and all relevant field units. “Attendance is expected from high-ranking officials down to those directly involved in overseeing the processes,” the official mentioned.
October witnessed a notable 13% year-on-year surge in the government’s GST collections, reaching Rs 1.72 lakh crore—the second-highest revenue collection ever.
These upcoming meetings aim to ensure that the processes and the functionality of the GSTN portal are optimized before the commencement of GST collections in the new financial year.
The trajectory of GST revenue collection has shown significant progress, primarily through the expansion of the tax base and enforcement measures. Since its initiation on July 1, 2017, GST revenue has evolved remarkably.
From the initial collection of Rs 95,633 in July 2017 to a low of Rs 32,172 in May 2020 during the pandemic, and culminating in Rs 1.72 lakh crore in October, it has been a substantial journey.
Enhancing GST revenue used to pose a challenge, with monthly collections persistently below Rs 1 lakh crore. Moreover, the initial years of the GST system faced criticism from taxpayers due to backend issues, resulting in a sluggish portal functionality.
