Union Minister Nirmala Sitharaman said on Friday that Central Board of Indirect Taxes and Customs (CBIC) officials will need to continuously monitor the implementation of GST 2.0 benefits for businesses, stating that they must ensure that the GST registration and refund processes remain “easy and smooth”. The Minister of Finance and Corporate Affairs was speaking at the inauguration of a new Central Goods and Services Tax (CGST) building in Ghaziabad, Uttar Pradesh.
Citing data from traders’ body CAIT, Sitharaman said that sales have reached the highest levels recorded in the past 10 years due to the government’s GST reforms. “Traders’ confidence has increased,” she said.
One month of GST 2.0 reforms
Her remarks came roughly a month into the implementation of major reforms in the indirect tax regime, including the elimination of 12 per cent and 28 per cent tax slabs to switch to a two-primary-rate system (5 per cent for essential items and 18 per cent as standard). The central government also introduced a special, 40 per cent rate for luxury and sin goods — like tobacco products.
“Next-generation GST is not just about cutting taxes, but also about how taxpayers can be made to feel positive and satisfied,” she said.
The GST 2.0 reforms were introduced after the finance minister-chaired GST Council’s 56th meeting, in a bid to simplify taxation, reduce compliance burdens, and make goods and services more affordable. Earlier, Prime Minister Narendra Modi had promised a “big Diwali gift” in the form of major GST rate cuts.
The central government strategically timed the GST 2.0 rollout during the onset of the Navratri festival, aiming to boost consumer spending during the festive season.
Automatic GST registrations coming soon
The finance minister reiterated that automatic GST registrations are set to begin within the next three days.
The government has announced the introduction of automated GST registrations for small and low-risk businesses, effective November 1. Under this drive, businesses with a monthly output tax liability on B2B supplies not exceeding Rs 2.5 lakh will be eligible for automatic registration.
The system will take up GST registration within three working days automatically once a business submits the application online. The move is aimed at reducing compliance burden and improving the ease of doing business for small businesses.
The Union minister also directed the CGST department to try to resolve recurring issues in a single attempt, responding as quickly as possible in excise and customs matters as well. “Just as CBIC officials have worked efficiently in GST matters… The same agility and promptness are expected from officers in the excise and customs departments,” she said.
‘Corruption will not be tolerated’
Any officer or employee found engaging in corruption will not be spared, said the finance minister. “If someone does wrong, there will be no mercy… if someone does right, there will be no fear,” she remarked.
