Prelims Syllabus : Economy Mains Syllabus : GS-III Indian Economy
Why in News?
- The 2nd National GST Conference was held for streamlining the GST system.
- The 2ndNational GST Conference of the Commissioners of State Tax and Chief Commissioners of Central Tax was held under the chairmanship of the Revenue Secretary, Ministry of Finance.
- The conference focused on streamlining the GST system and plugging revenue leakages.
- This was the 2ndedition of the all India conference where both tax administrations came together formally to build synergy and to share their knowledge and best practices with intent to bring about uniformity in tax administrations.
Outcomes of the Conference:
- To constitute a Committee of Centre and State officers to examine and implement quick measures in a given time frame to curb fraudulent refund claims including the inverted tax structure refund claims and evasion of GST.
- Considering fraudulent IGST refund claims, it was explored to link foreign exchange remittances with IGST refunds for risky and new exporters.
- All major cases of fake Input Tax Credit, export/import fraud and fraudulent refunds shall also be compulsorily investigated by the Income Tax Department.
- MoU would be signed among the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes (CBIC) and GSTN to exchange data through API, from CBDT to GSTN and CBIC and vice-versa. It was decided that this data should be shared on a quarterly basis, instead of being shared on a yearly basis.
- To explore access to banking transactions (including bank account details) by GST system, in consultation with RBI and NPCI.
- To share data of cases involving evasion and fraudulent refund detected by CBIC with CBDT and vice versa, so that proper profiling of these fraudsters could be done.
- It was also suggested to provide a single bank account for foreign remittance receipt and Refund Disbursement.
- A self-assessment declaration to be prescribed by suitable amendments in GSTR Forms in case of closure of businesses.
- To undertake verification of unmatched input tax credit availed by taxpayers.