Faceless GST System Implemented for Central GST Payers
NEW DELHI: Finance Minister Nirmala Sitharaman announced a new faceless system for 200,000 central GST payers operating across multiple states. This initiative follows recent rate rationalisations and process reforms by the Centre and states. The effective GST rate on all goods and services has decreased from 11.8% to 10.8% after last year’s rate cuts. Sitharaman stated that rate changes will now occur annually, starting in April each year.
Sitharaman emphasized that 99% of the issues related to GST have been resolved. She noted that the reforms are driven by a principle of trust and that the government remains open to further adjustments as necessary. The proposed centralised tax administration aims to streamline CGST-related functions, including return scrutiny, audits, and grievance redressal, for taxpayers with multiple jurisdictions.
A working group within the Central Board of Indirect Taxes and Customs has submitted its report on the new framework. This framework will undergo public consultation before the next budget and is set to be implemented in the next financial year. Sitharaman highlighted that the faceless approach, which has been well-received in income tax administration, will also be applied to GST. She clarified that this initiative is a government effort and not related to the GST Council. Currently, there are approximately 6.95 million taxpayers registered under the CGST administration, including the 200,000 under multiple jurisdictions.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
