GST review on June 19, Income Tax review on June 23; tax collections, refunds, litigation, taxpayer services likely to be in focus

Finance Minister Nirmala Sitharaman is holding three high-level meetings with revenue officials starting next week. Sitharaman is taking good and services tax (GST) and income tax reviews on June 19 and June 23, respectively. 

In these metings, the Finance Minister will discuss ease of doing business for taxpayers, enhanced complaince and faster dispute resolution.

The first meeting will be held on June 19. A source close to development told Zee Business: “FM and CBIC may discuss DGGI’s working style and focus on syndicate cases rather than on small traders.” 

The source also said that the main majorly focus in this meeting will be a review of major enforcement actions, investigations, and revenue recovery drives carried out by DGGI. 

In this meeting, the CBIC will apprise about technology upgradation in GST register action and the expedition of the GST refund process. This meeting will discuss future GST action. 

Another source said: “In this meeting  simplification of rate rationalisation will impact the revenue may also discuss in the meeting. In this meeting, may discuss how going forward to increase revenue with ease for small traders.”

Income Tax Review Meeting: June 23

The second major meeting will be held on June 23, focusing on direct tax administration.

Senior CBDT officials will present a comprehensive overview of departmental performance, pending challenges, and policy strategies for the next fiscal year.

A senior CBDT source told Zee Business: “The Finance Minister will be briefed on revenue trends, unresolved tax demands, taxpayer grievances, and the effectiveness of the faceless assessment regime.”

Key areas of the presentation will include:

Revenue Collection Trends 

A three-year comparative analysis of collections from corporate and non-corporate taxpayers, along with a detailed breakup of revenues from advance tax, TDS, arrears, and adjustments under Sections 245(1) and 245(2).

Taxpayer Segmentation 

Insight into major revenue contributors like salaried taxpayers and amounts collected through mandatory pre-deposits in appeal cases.

Demand and Recovery 

Data on total tax demand raised (with and without interest), along with category-wise details of disputed and undisputed demands and their pendency. The Finance Minister will also review strategies for arrear liquidation, asset recovery, and disposal of attached assets with age-wise classification.

Faceless Assessment Review 

A comparison between assessments conducted under faceless and non-faceless modes. The ministry is also expected to analyse outcomes of best judgment assessments under Section 144 due to non-compliance or data mismatches.

Transfer Pricing & Safe Harbour 

A review of pending transfer pricing cases, demands raised, and applications under the Safe Harbour Rules, including their ageing status.

Litigation Management 

An update on forum-wise and age-wise pendency of appeals, especially those pending for over five years. The Finance Minister will also seek progress under Vivad se Vishwas 2024, including appeals withdrawn due to the revised monetary threshold.

Taxpayer Services & Refunds 

Sources indicate that the Finance Minister is especially focused on improving the “feel-good factor” for taxpayers.

She is likely to review:

• Status of pending grievances under CPGRAMS and e-Nivaran 
• Pendency of Orders Giving Effect (OGEs) to appellate decisions beyond 3 and 6 months.
• Backlog in rectification applications, compliance with the 180-day timeline 
• Refund delays under Section 143(1), particularly due to mismatches in TDS or advance tax 
• Interest paid on delayed refunds under Sections 244A and 244(1A) in the last three years

Customs Department Review Also Scheduled

In the last week of June, Finance Minister Sitharaman is also expected to review the Customs Department, with a specific focus on the performance of the Faceless Assessment regime and progress on pending policy and procedural reforms.