Friday, June 20, 2025

Finance Ministry’s 2-day field conclave begins tomorrow to fast-track GST & customs reforms

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A high-level, two-day brainstorming conclave of top field officials of the Revenue Department will kick off in New Delhi on Thursday, June 19, sources told CNBC-TV18. According to sources, Finance Minister Nirmala Sitharaman is likely to interact directly with senior field officers and zonal chiefs on June 20.The objective is to align grassroots tax administration with the Centre’s evolving policy focus on faster resolution, ease of doing business, and robust revenue mobilisation. Sources said the conclave is set to draw up a detailed action plan covering key aspects of GST and Customs under the indirect tax regime.

Minister of State for Finance Pankaj Chaudhary will open the two-day conclave on June 19, and Finance Minister Nirmala Sitharaman will conclude the event with her discussion with field officials, sources added.

“Revenue Secretary Arvind Shrivastava’s focus will be on current revenue trends and guidance for the officers to chart out a plan for the remaining quarters of the fiscal,” sources in the know of the meeting told CNBC-TV18 on the condition of anonymity.Sources said apart from the discussions on current revenue trends, focus will also be on challenges being faced by both tax administrators and the industry and taxpayers, and new trends in smuggling and GST evasion, measures for ease of doing business and grievance redressal.Detailed discussions on steps taken to identify sectors and markets dealing in cash, litigation management efforts undertaken, and new measures will also be on the agenda, sources added.GST action plan: Key areas to be discussedSpeeding up GST registrations and cancellationsSources told CNBC-TV18 that the government is keen to cut down the processing time for GST registration applications. While the legally prescribed time is seven days, the Centre may urge field formations to aim for a five-day clearance in non-risky, complete applications.Where applications are flagged for physical verification, or Aadhaar authentication is not completed or failed, sources said the government wants the process wrapped up in 20 days, instead of the current 30-day legal timeline.On registration cancellations, sources said the focus will be on timely disposal to avoid unnecessary compliance for inactive businesses.Timely conclusion of investigationsSources revealed that as of April 1, 2025, there are over 13,000 pending investigation cases involving over ₹37,500 crore. Of these, about 35 cases are pending beyond a year and about 900 cases for over two years.According to sources, the Centre is likely to direct fields to have:

Fortnightly reviews of investigation status by Commissioners
Reasons to be recorded for delays beyond a year
Zonal Chief Commissioners to monitor and ensure resolution within a maximum of 9 months from such a point

Focus on adjudication and show-cause noticesSources added that a total of over 32,500 adjudication cases involving ₹1.94 lakh crore are pending. The government may ask zonal heads to fast-track the issuance of show-cause notices and conclude adjudication swiftly, particularly in tax evasion and fake input tax credit (ITC) cases.GST refunds: Streamline refund processesThe Finance Ministry is also considering streamlining refund processes. As of April 1, 2025, over 24,000 refund cases worth ₹15,260 crore were pending. Sources said the Centre believes that faster refunds will encourage compliance and build trust in the tax system, adding that the timelines could be re-set post discussions for internal tax administration purposes, for better compliance management.Recovery of arrearsSources said the conclave will also deliberate on expediting the recovery of pending arrears. As per government data, over 62,000 cases amounting to ₹31,000 crore are pending. Of this, about ₹24,000 crore is considered clearly recoverable, sources added.Sources further told CNBC-TV18 that the Centre wants immediate action on about 32,000 cases worth ₹8,860 crore where recovery has not even been initiated.Improving return filing & monitoring ITCCurrent monthly GSTR-3B return filing stands at 87–88%, and the Centre may urge officials to aim for 95% compliance, sources indicated.In addition, 36,000 cases of ITC claims worth ₹1.12 lakh crore are pending as of April 1, 2025, with ₹20,102 crore stuck for over a year. Field formations are likely to be instructed to unblock genuine claims and act against fake or fraudulent ones, sources said.Widening tax base & reducing classification disputesEfforts to expand the taxpayer base, simplify communication, and reduce classification and rate disputes will also be part of the GST action agenda, sources added.Customs modernisation: Speed & infrastructure on agendaOn the Customs front, sources said the focus will be on speeding up clearance, particularly under the flagship Turant Customs programme.

Entry point clearance and scanner infrastructure: Sources said the government will review scanner availability and deployment at entry points to ensure faster clearance. Online cargo registration and reduced manual intervention will be key discussion points.
Passenger facilitation: With increasing air and sea traffic, sources said the Centre is considering strengthening K9 units and baggage scanners to speed up passenger movement.
E-commerce and MSME exports: Sources added that a pilot project for faster e-commerce shipment clearance will be rolled out at Delhi, Mumbai, and Bengaluru. The Centre is also exploring collaboration with India Post to promote MSME exports.
Infrastructure expansion: The progress of setting up 11 Inland Container Depots (ICDs) and 12 Container Freight Stations (CFSs)—for which Letters of Intent have been issued—will be reviewed. With several new airports and seaports coming up, a study to assess manpower requirements is also likely to be undertaken to ensure adequate staffing for upcoming infrastructure, sources said.

Big pictureSources told CNBC-TV18 that the two-day conclave is critical in streamlining tax administration and accelerating compliance and enforcement. As the government eyes a more robust revenue base in the run-up to FY26, this meeting could define the administrative roadmap for the months ahead.

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