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This Article is From Jun 13, 2025

FM To Review GST, Customs, Direct Tax Administration; Focus On Refunds, Litigation And Accountability

FM To Review GST, Customs, Direct Tax Administration; Focus On Refunds, Litigation And Accountability
On June 23, the Finance Minister will engage with Principal Chief Commissioners of the Income Tax Department. (Photo source: Finance Ministry/X Profile)

Finance Minister Nirmala Sitharaman is set to conduct high-level review meetings with top tax officials from both the indirect and direct tax wings this month, with a sharp focus on refund delays, litigation backlogs, and systemic accountability, according to sources.

On June 20, the FM will hold a detailed interaction with Principal Chief Commissioners of the Central Board of Indirect Taxes and Customs (CBIC). The meeting will assess the performance of field formations across GST and Customs, with senior officials indicating that delays in refund processing—especially for exports and SEZ-linked claims—will come under tight scrutiny.

Zones may be asked to explain refund pendency beyond 60 days and high rejection rates, backed by detailed data analytics. The FM is also expected to seek a zone-wise review of cargo clearance dwell times, focusing on RMS-facilitated clearances, interdiction rates, and examination timelines at ports and airports.

Investigations pending over 180 days with DGGI are likely to draw specific attention. The FM is expected to push for time-bound vigilance actions, stronger accountability in physical verifications, and greater use of technology to improve operational efficiency — reinforcing the government's dual commitment to compliance and trade facilitation.

On June 23, the Finance Minister will engage with Principal Chief Commissioners of the Income Tax Department to review the department's performance on taxpayer service delivery, litigation reduction, and system-driven transparency.

Key focus areas will include the age-wise pendency of appeals, with directives expected to fast-track the disposal of legacy cases. Refund delays—especially those stuck due to non-processing under Section 143(1) or pending rectifications—will also be discussed in detail.

Field officers have been asked to present data on pending CPC tickets, e-Nivaran grievances, and average disposal timelines. The FM is likely to question zones with prolonged vigilance or disciplinary cases and encourage replication of best practices from high-performing regions.

The meetings underscore a strategic push to build a taxpayer-centric, technology-enabled, and accountable tax ecosystem, aligning with the broader policy goal of improving ease of doing business while ensuring robust compliance.

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