Panel seeks comprehensive review of GST framework, Pg 10

Key Highlights

PAC Recommendations

• Public Accounts Committee (PAC) urged the Finance Ministry to undertake a comprehensive GST review.

• Focus: Simplify procedures, improve user experience on the GST portal, and enhance refund transparency.

Need for GST 2.0

• Proposed revamped GST 2.0 after consultation with stakeholders.

• Emphasises reducing the frequency of filings, simplifying registration, and better grievance redressal.

Use of Technology

• PAC asked the Ministry to leverage AI/data analytics for accurate revenue projection and monitoring.

Challenges Identified

• Decline in indirect tax share: From 38.76% in FY18 to 36.92% in FY20.

• Issues with biometric Aadhaar authentication, especially for MSMEs and startups.

Refund & Compliance Concerns

• Urged creation of dedicated refund redressal cells, and timeline-based system for returns.

Analysis & Way Forward

• GST reform must evolve into a simplified, technology-backed, and inclusive taxation regime.

• GST 2.0 should balance ease of doing business with robust revenue assurance using AI-driven compliance checks.

Mains Mock Question:

"Critically assess the challenges in the implementation of the current GST regime. How can a GST 2.0 framework improve fiscal compliance and ease of business?"