GST to see big overhaul in November

A series of meetings is on the horizon, dedicated to a comprehensive review of the Goods and Services Tax (GST) and the associated indirect taxation procedures. The primary aim of these meetings will be to engage in brainstorming sessions, scrutinize existing processes, and deliberate upon internal workflows. The central focus will revolve around the imperative need to streamline and enhance these processes, as revealed by an official speaking to Money Control.

This reevaluation will entail a deep examination of how the internal procedures are currently functioning. The agenda of the meetings will encompass a critical appraisal of the functionality of the GST Network (GSTN) portal, the efficiency of indirect tax processes, the simplification of return filing procedures, and addressing any technical glitches, if identified. The GST Network serves as the technological backbone for this intricate taxation system.

The Central Board of Indirect Taxes and Customs (CBIC) is strategically utilizing this opportunity, considering the upcoming budget is not a full-fledged budget but a vote on account, in light of the impending general elections next year.

Explaining this rationale, the official further elaborated, “Since we are not presenting a comprehensive budget, it presents an opportune time to reevaluate our internal processes. Several aspects may have deviated from the desired path, and this moment provides us with the necessary time to realign them.”

A vote on account budget serves the purpose of enabling the current government to secure parliamentary approval for withdrawing funds from the Consolidated Fund of India to meet expenditures until the elections conclude.

These review meetings will see the participation of top-ranking officials from the CBIC, GSTN, and all field units. As the official emphasized, “From high-ranking officials to those directly involved in executing the processes, all will be actively involved.”

It is noteworthy that the government’s GST collections experienced a remarkable 13 percent year-on-year increase in October, reaching a record high of Rs 1.72 lakh crore, making it the second-highest revenue collection ever recorded.

The primary objective of these meetings is to ensure that the processes and the GSTN portal are in optimal working order well before the commencement of GST collection in the new fiscal year.

With the expansion of the tax base and robust enforcement measures, the GST revenue collection has traversed a significant journey. The introduction of GST in July 2017 marked the collection of Rs 95,633 in the first month. From there, it saw a decline to a low of Rs 32,172 in May 2020 during the pandemic. However, the latest figures, totaling Rs 1.72 lakh crore in October, signify substantial growth. Elevating GST revenue used to pose a challenge, with the average monthly collection remaining persistently below Rs 1 lakh crore. In its initial years, the GST system faced criticism from taxpayers due to backend issues, leading to the portal’s slow functioning.