Key Highlights

• Sitharaman urges timely income tax, GST, export refunds from authorities to enhance taxpayer efficiency and accountability.
• She convenes CBIC and CBDT meetings to streamline refund processes, reduce litigation, and improve service delivery.

Finance Minister Nirmala Sitharaman is expected to press tax authorities to ensure that income tax, GST, and export-related dues are refunded on time, while also highlighting the DGGI's lengthy investigation.

Sitharaman is scheduled to meet with top officials from the Central Board of Indirect Taxes and Customs next Friday, followed by a similar interaction with principal chief commissioners (CCs) of income tax on June 23. According to a source, the overall goal appears to be to improve taxpayer delivery, litigation management, and system accountability.

Delays in processing refunds that exceed 60 days will be scrutinized, and explanations are expected to be sought from principal customs and GST CCs, even in cases of rejection, as these tend to block funds that businesses can use for productive purposes, according to sources.

Even in the case of income tax, where return and refund processing has improved in recent years, FM is expected to focus on cases where payments were delayed due to non-processing of returns, as well as rectification cases impacted by system issues.

Also Read: FM Sitharaman Acts on Unclaimed Bank Deposits, Dividends, Shares, Pensions 

The Finance Minister will also review cargo clearance dwell times at ports and airports, with CBIC officials asked to share data on clearances using the risk management system as well as examination timelines for each zone.

The operation of DGGI and its investigations, which are frequently "open-ended," have been a source of concern for the industry, and the finance minister's emphasis on cases that have been pending for more than 180 days is interpreted as a clear message that the government does not want undue scrutiny.