Finance Minister Nirmala Sitharaman is set to take a firm stance on long-pending tax refund delays and extended investigations by GST authorities in two crucial meetings scheduled this month with top officials from the Central Board of Indirect Taxes and Customs (CBIC) and the Central Board of Direct Taxes (CBDT).
The meetings with CBIC officials on Friday, June 21 and principal chief commissioners of income tax on June 23 - are expected to focus on enhancing taxpayer services, ensuring timely refunds and improving litigation and investigation accountability, official sources revealed.
Focus on Timely Refunds Across Tax Departments
FM Sitharaman is likely to instruct authorities to expedite refunds under Income Tax, GST and export-related dues, emphasizing that delays beyond 60 days will no longer be tolerated.
Sources indicate that even in cases of refund rejections, principal chief commissioners of customs and GST will be asked to explain the reasons, as such delays block vital working capital for businesses.
While the income tax department has made significant progress in processing returns and issuing refunds in recent years, the Finance Minister is expected to highlight concerns related to:
- Refunds held up due to non-processing of returns
- Rectification applications stuck due to system-related issues
- Delays in issuing refunds under Section 143(1) due to mismatches in TDS or advance tax
DGGI Investigations Under the Scanner
A key highlight of the upcoming GST meeting will be the long pendency in probes conducted by the Directorate General of GST Intelligence (DGGI). Sources suggest Sitharaman may express concern over "open-ended" investigations and cases that have remained unresolved for over 180 days, causing uncertainty for businesses.
This move is seen as a signal that the government wants greater transparency and faster closure in investigative proceedings to avoid unnecessary scrutiny that hampers the ease of doing business.
Cargo Clearance and Port Efficiency to Be Reviewed
The Finance Minister will also assess the dwell time of cargo at ports and airports, an important parameter for trade facilitation and logistics efficiency. The CBIC has been asked to submit detailed data on:
- Cargo clearances through the Risk Management System (RMS)
- Examination timelines by zone
- Comparison of clearance speed across customs locations
This review is in line with the government's efforts to reduce logistical bottlenecks and improve India's ranking in ease of doing business.
These meetings are likely to pave the way for improved taxpayer services, faster refund processing and reduced bureaucratic delays - especially in GST investigations and customs clearances. With rising scrutiny over the time taken in tax enforcement and refund settlements, Sitharaman's intervention signals a renewed push towards efficiency, transparency, and taxpayer confidence.
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