In preparation for a high-level review meeting next week, the Ministry of Finance has called for comprehensive field-level data from both direct and indirect tax authorities. The aim is to assess key challenges in the taxation system, including pending refunds, adjudications, investigations, and litigation.

Finance Minister Nirmala Sitharaman will engage with senior officials of the Central Board of Indirect Taxes and Customs (CBIC) on June 20 and with the Central Board of Direct Taxes (CBDT) on June 23. These interactions are part of a broader effort to streamline tax administration and improve taxpayer services.

According to officials, the upcoming conclave will give special focus to refund processing, particularly in the export and SEZ-linked categories. Refund delays exceeding 60 days are to be scrutinized, and tax zones may be asked to provide detailed analytics explaining the reasons behind such delays.

The Ministry also plans to evaluate delays in cargo clearance across ports and airports, with an emphasis on high pendency in Directorate General of GST Intelligence (DGGI) investigations. Cases pending for over 180 days will be given particular attention.

On the direct tax side, the Minister is expected to review refund processing efficiency, litigation trends, and the disposal of legacy cases. Appeals pending for extended periods may also come under scrutiny.

As part of the preparations, the CBIC and CBDT have been instructed to submit extensive data on various issues, including:

• Number and age-wise breakup of pending refunds, investigations, and adjudications.
• Instances of fake firms involved in fraudulent GST registrations, particularly those able to obtain registration undetected.
• Volume of unresolved cases pending for more than two years and reasons for pendency.

Field officials have also been asked to provide a breakup of investigations pending for over a year and adjudications delayed beyond 12 months as of May 31, 2025.

This data will form the basis of discussions during the Minister’s meetings, where efforts will be made to identify pain points and implement reforms to enhance transparency, improve processing timelines, and prevent fraud.

Officials indicate that the goal is to simplify systems, tighten loopholes, and make tax administration more robust and efficient for all stakeholders.

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