FM Sitharaman Calls for Review of Taxation Issues; Departments Seek Inputs from Field Offices

FM Sitharaman to Review Tax Refunds, Investigations, and Pending Litigation Ahead of Key Conclaves.

Ahead of a high-level review with top tax officials next week, the Ministry of Finance has directed field offices to furnish detailed data on pending refunds, investigations, adjudication, frauds, and litigation. Finance Minister Nirmala Sitharaman will chair two separate brainstorming sessions — with indirect tax officials on June 20 and direct tax officers on June 23 — to assess systemic bottlenecks and push for administrative reforms.

The Central Board of Indirect Taxes and Customs (CBIC) will begin its two-day conclave on June 19, followed by a session of the Central Board of Direct Taxes (CBDT) on June 23.

Refund delays, SEZ claims, and GST frauds

A senior official said the Finance Minister will lay particular emphasis on long-pending GST and customs refunds, especially those linked to exports and SEZs. Refund claims delayed by over 60 days will come under scrutiny, and officials may be asked to explain rejection trends with supporting analytics.

Port and airport cargo dwell times are also expected to be reviewed, with delays in clearance and logistics flagged as areas needing improvement.

In terms of enforcement, the Directorate General of GST Intelligence (DGGI) faces critical attention due to a large number of investigations pending for over 180 days.

CBDT session to focus on litigation, refunds, and case disposal

On the direct tax front, the Ministry aims to push for faster refund issuance, improved systems accountability, and resolution of legacy litigation. Sitharaman will review age-wise pendency of appeals and the status of efforts to reduce the income-tax department’s litigation burden.

Both CBIC and CBDT have sent fresh directives to field formations this week asking for granular information on pending and resolved cases across various verticals — refund processing, investigation timelines, fraud detection, and appeal status.

Crackdown on GST fake firm networks

A June 14 letter to GST field officers called for detailed case studies on instances where multiple fake firms were being operated by a single mastermind. Officers have been instructed to analyze how such entities were able to secure GST registration without triggering red flags. “This exercise will help us identify loopholes and strengthen the registration process,” the letter stated.

In a separate communication dated June 12, GST officers were asked to submit data on completed investigations for the past two fiscal years, average investigation timelines, and the number of cases pending for over two years — including reasons for the delays and year-wise breakdowns.