Public Accounts Committee’s (PAC) Report on GST

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.

Reference

The Hindu| PAC’s Comprehensive Review of GST