NEW DELHI:

Just hours after the budget presentation on February 1, Finance Minister Nirmala Sitharaman embarked on a significant mission - a comprehensive overhaul of the GST system. This initiative aimed not only at adjusting rates but also at resolving widespread complaints related to registration and refunds.

Behind the Scenes: Contrary to popular belief linking these changes to recent tariff actions by the U.S., the finance ministry had been meticulously planning this revamp for nearly six months. Sitharaman, alongside her team of officials, including at least three revenue secretaries since the budget, conducted close to 50 internal meetings. Their goal was clear: a detailed, item-by-item review of GST rates to ensure fairness and efficiency.

Streamlining Processes: The revamp focuses on enhancing predictability, addressing classification issues, rectifying the inverted duty structure, and simplifying compliance procedures. Among the proposed changes is a simplified registration mechanism based on risk profiling, aiming to process 95% of applications within three days. Additionally, the introduction of pre-filled returns is expected to minimize mismatches that often delay refunds, particularly for exports, by reducing unnecessary human intervention.