The Public Accounts Committee (PAC) has recommended simplifying the Goods and Services Tax (GST) system to ease compliance for taxpayers.
They suggested streamlining the return filing process by consolidating forms and reducing filing frequency where possible.
A tiered compliance approach should be introduced, offering smaller businesses simpler processes compared to larger ones.
The PAC urged the Finance Ministry to improve the GST portal for better user support during the filing process.
A revamped GST 2.0 should be developed after consulting stakeholders to address concerns and ensure timely tax collection.
The committee highlighted issues with harsh penalties for unintentional mistakes by honest taxpayers.
Concerns were raised about biometric-based Aadhaar authentication complicating the GST registration process, hindering the 'One Nation, One Tax' goal.
The PAC recommended using data analytics and AI tools to better project GST revenue collection, noting a drop in indirect tax share.
A more transparent and efficient refund processing system is needed, with clear timelines and regular updates for taxpayers.
A dedicated grievance redressal mechanism for refund issues should be established.
The PAC recommended a simplified GST framework for MSMEs, including automated return filing, reduced filing frequency, and an easier online reporting process.
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