Prelims – Economic and Social Development.
Current events of national and international importance.
Mains – GS II | Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Why in the News?
Recently, Public Accounts Committee (PAC) has recommended the Finance Ministry to undertake a comprehensive review of the GST framework to identify and eliminate unnecessary procedures and requirements that complicate compliance.
- PAC – It is a parliamentary committee which was established in 1921.
- It is responsible for auditing the revenue and expenditure of the government and thereby ensuring financial accountability and transparency in public spending.
- 19th PAC report on GST – It seeks comprehensive review of GST framework with stakeholder consultation.
- Issues raised – It flags criminal penalties meted out for compliance failures, with some honest taxpayers facing criminal penalties even in cases of unintentional errors.
- It critics the initial steps taken towards biometric-based Aadhar authentication as they are “riddled with so many issues.
PAC’s recommendations to Finance Ministry
- Streamlining return filing process – Consolidating forms and reducing the frequency of filing where possible.
- Adopting a top tiered compliance – Simplifying process for smaller businesses thereby reducing the burden on smaller taxpayers.
- User friendly GST portal – Providing a clear guidance and support to taxpayers at every step in the filing.
- Incorporating new technologies - Data analytics and artificial intelligence tools can be used for an accurate projection of the revenue to be collected.
- Transparent refund processing system – Having timelines for processing claims and regular updates to taxpayers.
- Grievance redressal mechanism – Establishing a mechanism to allow tax payers to raise concerns and receive prompt assistance.
- Other recommendations – It sought a case management system for the real-time tracking of pending cases and monitoring of all GST-related documents in digital form.
|
Goods and Services Tax (GST)
|
- GST – A form of indirect tax levied on most of the goods and services sold in India for domestic consumption.
- It is a destination-based taxation system.
- Launch – It came into effect on 1st July 2017, passed by 101st Constitutional Amendment Act in 2016.
- Article 246A – Concurrent power of Parliament and the State Legislatures to make laws related to GST.
- Article 269A – Inter-state GST
- Article 279A – GST Council.
- Motto - "One nation, One market, One tax”.
|
Reference
The Hindu| PAC’s Comprehensive Review of GST
