Recently, the 2nd National GST Conference of the Commissioners of State Tax and Chief Commissioners of Central Tax was held. This conference earmarked a noteworthy event in the realm of Goods and Services Tax (GST) system. The key focus of this conference was to streamline the GST system and address revenue leakages that negative impact the economy.
This forum served as a platform for officials to collaborate and share knowledge and best practices. The ultimate goal was to foster uniformity in tax administrations, thereby creating a more efficient tax infrastructure across the regions.
Newly Conceived Measures and Agreements
A significant decision emanated from the conference – the government has resolved to form a panel consisting of centre and state officials. This panel is tasked with creating an elaborate Standard Operating Procedure (SOP) to deal with fraudulent GST refund claims and evasion of GST.
One of the impending undertakings following the conference is the signing of a memorandum of understanding between the Central Board of Direct Taxes (CBDT), the Central Board of Indirect Taxes and Customs (CBIC) and the GST Network. The intention of this agreement is to facilitate data sharing through the application program interface.
Previously, data sharing occurred annually. This practice will change, and data will now be shared on a quarterly basis which will ensure updated and timely data exchange.
Another conclusion drawn from the conference is the alignment of the GST system with the Financial Intelligence Unit (FIU). This move aims at enabling access to bank account details and transaction information on a PAN-based transaction basis.
| Key Points | Description |
|---|---|
| Formation of official panel | A panel consisting of central and state officials for creating SOPs against GST fraud and evasion |
| CBDT, CBIC, GST Network agreement | An agreement to facilitate data sharing quarterly instead of annually |
| Alignment with Financial Intelligence Unit (FIU) | Enables access to bank account details and transaction information |
A Look at the Financial Intelligence Unit (FIU)
The Financial Intelligence Unit, constituted in November 2004, occupies an important position in the financial ecosystem. It operates as an agency tasked with gathering and disseminating financial intelligence. Although not a regulatory body, the FIU collaborates closely with regulatory bodies such as RBI, SEBI and IRDA.
Currently, the FIU is in the process of seeking membership of the Egmont Group of FIUs. This international group consists of Financial Intelligence Units from different countries, promoting better cooperation and collaboration on financial intelligence matters.