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The launch of the tax regime from the simplified goods and services (GST), the Public Accounts Committee (PAC) recommended that the Ministry of Finance perform a comprehensive review of the GST framework to identify and eliminate unnecessary procedures and requirements that complicate compliance.
This involves streamlining the process of submitting the backward administration of formolidation of forms and reducing the frequency of submission, if possible, Pac said in its 19th report on Wednesday, March 26, 2025). It has also sought to access regulations where smaller businesses face fewer requirements and simplified processes compared to larger entities, thereby reducing the burden of smaller taxpayers.
The Ministry was asked to improve the user -friendliness of the GST portal and ensured that it provides clear instructions and support to taxpayers in every step in the process of filing.
Penalty
The Committee called on the revised GST 2.0 after consulting the stakeholders, including the business associations and the groups of taxpayers to deal with their fears and ensure early collection of taxes to set the declared goal of the GST regime – simplified and rationalized indirect tax system -.
PAC also emphasized significant challenges faced by taxpayers, in particular the punishment that fulfilled the failure of compliance, while some honorary taxpayers faced criminal sanctions even in the event of an unintentional error.
As for the registration process, the Committee claimed that when the initial steps were taken to biometric verification Aadhar based on biometric verification “intertwines so many questions, GST vision leading to a simplified and unified tax system, ie” One Nation One Tax “, can remain evasive.”
AI Help in the projection of income
He notes that the share of indirect taxes in total income decreased from 38.76% in 2017–18 to 36.92% in 2019–2020, with analysts and artificial instruments in the following years.
The ministry attributed a decline in macroeconomic factors, such as import volumes, global economic conditions and changes in tax policy, including reduction of duties on free trade imports (FTA).
Transparent Money Return System
Problems marked in the GST return mechanism, PAC recommended that the ministry implemented a more efficient and transparent system of refund processing, which includes clear timelines for the processing of claims and regular updates to taxpayers on their return status.
“Determination of a specialized remedy mechanism for complaints for questions related to the refund would also be beneficial, which would allow taxpayers to invoke concerns and obtain rapid assistance,” the committee said.
PAC recommended that the ministry implement a simplified framework for compliance with GST regulations, in particular, designed for MSME to quickly monitor and automate back and return money. This should include a reduction in the frequency of return submissions and allow a simpler process of online reporting.
For the benefit of PAC exporters, he also called for the documentation required for export, provision of clear instructions and control lists to help the community understand the requirements for compliance.
Data analytics, real -time monitoring
In the PAC Information Technology era, the Ministry suggested that the Ministry uses data analysis to actively identify uncomplicated taxpayers and the introduction of stricter sanctions for repeated non -compliance. He was looking for a system management system to monitor waiting cases in real time, prioritization based on tax consequences and effective resource allocation.
PAC sought to implement the fully helpless GST system by means of the use of all interactions between taxpayers and tax authorities through digital platforms.
Note that the compensation payable by the state must be calculated and released at the end of two months and finally calculated for each financial year after being audited by the General Administrator and the auditor, PAC demanded that this procedure be streamlined.
The Committee asked the Ministry to issue a comprehensive format for monitoring all GST -related documents in digital form within six months after the report.
Published – March 26, 2025 21:10
