(CBDT), Department of Revenue, Ministry of Finance Year Ender 2023: Department of Revenue
In the year 2023, the Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, has taken many citizen-centric initiatives throughout the year. The CBDT has furthered initiatives through reforms by focusing on taxpayer outreach, assistance through active helpdesks, and has embraced faceless processes, showcasing a commitment to transparency and efficiency. The revamped national website and other digital initiatives have also contributed to an overall improved taxpayer experience.
Gross tax collections of Rs. 12.67 lakh crore mark a 17.7% YoY increase, with net collections reaching Rs. 10.64 lakh crore, reflecting a 23.4% growth. Notably, 58.34% of the budget estimates for the fiscal year have already been realized. Speedy processing and refunds are evident, with over Rs. 2.03 lakh crore refunded, and more than 3.43 crore Income Tax Returns (ITRs) processed within 7 days. The introduction of initiatives like TIN 2.0, pre-filling of ITRs, and updated returns has streamlined processes, resulting in 44.76 lakh updated returns filed.
The Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, has achieved significant milestones in enhancing the efficiency and integrity of the Goods and Services Tax (GST) system. Goods and Services Tax (GST) not only completed six successful years of implementation but also broke all records of previous collections and achieved the highest ever tax revenue collection for April 2023 at Rs 1.87 lakh crore.
Leveraging data analytics and artificial intelligence, the CBIC has strengthened the registration process by implementing a risk rating system for applicants, ensuring thorough verification to prevent fraudulent entries. Additionally, geo-tagging of business locations, system-based suspension of registrations for non-filers, and risk-based processing of refund applications showcase CBIC's commitment to curbing malpractices.
To streamline the filing process, sequential filing of GSTR-1 and GSTR-3B has been mandated, promoting timely returns and smooth availability of input tax credit. Special drives against fake registrations, system-based mechanisms for intimation of mismatches, and a new functionality for unregistered persons to apply for temporary registration demonstrate CBIC's dedication to compliance.
Moreover, measures like transfer of balance in electronic cash ledgers, exemptions for small taxpayers, and facilitation of intra-state supply through e-commerce operators underscore the CBIC's efforts to support businesses and improve cash flows. Noteworthy is the extension of GST exemptions for satellite launch services and simplification of late fee structures.
On the customs front, CBIC has initiated regulatory and policy reforms, including the rationalization of customs duty rates and steps towards decriminalization. Technological advancements like ICEGATE 2.0 and the Anonymised Escalation Mechanism showcase a commitment to modernisation and user-friendly interfaces. Infrastructural initiatives, such as pre-gate processing facilities and modernisation of control laboratories, further enhance operational efficiency. The CBIC's efforts reflect a holistic approach to tax administration, aiming for transparency, Ease of Doing Business, and compliance.