Faceless Gst System: Faceless system in place for central GST payers

Faceless system in place for central GST payers
FM Nirmala Sitharaman chairs the 57th meeting of GST Council. Rate changes will now be an annual feature, says Sitharaman

NEW DELHI: Finance minister Nirmala Sitharaman on Thursday announced a faceless system for 2 lakh central GST payers operating in multiple states, following up on rate rationalisation and process reforms undertaken by the Centre and the states.After last year’s rate cuts, the effective GST rate on all goods and services has come down from 11.8% to 10.8%. Together with the procedural simplification, 99% of the issues have been resolved, FM said, adding that rate changes will now be an annual feature that will be implemented from April every year.“For the next-gen GST reforms, 99% of the issues have been addressed. Everything on the process and rate side has been driven from a principle of trust,” she said, adding that govt was keeping the door open for further fine-tuning, as and when required.“Going forward, we intend to bring a centralised tax administration for these multiple CGST jurisdiction for taxpayers with a unified window for all their CGST-related functions of scrutiny of returns, audit, adjudication, appeal, taxpayer services and grievance redressal,” she told reporters, while asserting the Centre’s initiative.A working group within the Central Board of Indirect Taxes and Customs has submitted its report, and the proposed framework would be put up for public consultation before the next budget and will be implemented during the next financial year.The FM said the faceless approach adopted in income tax was appreciated by taxpayers and the Centre intended to bring in the same reform in the administration of GST.Sitharaman clarified that it was a govt initiative and had nothing to do with the GST Council. She said there were nearly 69.5 lakh taxpayers registered under the CGST administration, which included these two lakh taxpayers under multiple GST jurisdictions.Administrative control over GST taxpayers has been divided between the central and state tax authorities based on a specific turnover-based formula determined by the GST Council to ensure a single interface. While administrative control over 90% of taxpayers, who have turnover below Rs 1.5 crore, has been kept under state tax administration, the remaining 10% is with the central administration.Taxpayers with turnover above Rs 1.5 crore are divided equally between the central and state tax administrations.

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