Speed Up GST and Customs Refunds: Finance Minister Sitharaman

 

Union Finance Minister Nirmala Sitharaman has directed officials to expedite GST and customs duty refund processes and make them simpler and more transparent.

 

Speaking at a review meeting on Friday with senior officials of the Central Board of Indirect Taxes and Customs (CBIC), Sitharaman stressed the importance of improving taxpayer services and ensuring timely settlements of claims.

She instructed that all pending GST refunds be cleared quickly and that efforts be intensified to process cases within the standard 21-day timeline. “Departments should work in mission mode to improve efficiency,” she said.

The Finance Minister also highlighted the need to set up dedicated helpdesks for GST services and customs duty refund support. Officials were told that processes must be so straightforward that taxpayers feel comfortable visiting field offices for any assistance.

 

According to the Finance Ministry, nearly 85% of GST refund applications are currently processed within 30 days, and the target is to increase this to 95%.

 

Strict Watch on Overseas Deposits

The government also announced stricter monitoring of funds held by Indians in foreign bank accounts. Based on new information exchange agreements with other countries, authorities have identified ₹24,678 crore in undisclosed income during assessment year 2024–25.

 

Additionally, undisclosed deposits amounting to ₹29,208 crore in foreign banks have come under scrutiny. Officials said investigations are underway in collaboration with international agencies, and data received under the automatic information exchange framework since 2019 is being analyzed for further action.

 

Sitharaman emphasized that robust measures will be taken against taxpayers claiming incorrect input tax credit or engaging in fraudulent activities.

The Finance Ministry plans to launch a special awareness drive soon to help taxpayers understand their rights and obligations regarding refunds and compliance.