Finance Minister Sitharaman Urges GSTN and Income Tax Portal to Enhance System Capabilities

Finance Minister Sitharaman Urges GSTN and Income Tax Portal to Enhance System Capabilities

Officials have revealed that the government has requested technology providers for both the income tax website and the GST Network to significantly enhance their system capabilities over the next decade. 

These enhancements include the development of an efficient monitoring environment to detect tax evasion, the integration of robust data analytics capabilities, and the simplification of the return filing process.

This initiative follows Finance Minister Nirmala Sitharaman's directive to the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) to collaborate on improving the digital infrastructure of these portals, given the expected increase in future transactions, during a Chintan Shivir held last month.

The Finance Minister emphasized the importance of an error-free, user-friendly, and efficient refund and tax-filing system," a senior official stated.

Infosys currently serves as the technology provider for both the income-tax return portal and the Goods and Services Tax Network (GSTN), responsible for offering technical support for the goods and services tax system.

While GSTN has chosen not to renew Infosys' contract, set to expire on September 30, 2024, the Income Tax (I-T) department has already urged the company to make necessary improvements to the system.

The immediate focus is to enhance the faceless system, which includes establishing a database for the new tax system, implementing end-to-end automation, and simplifying the income tax return form for all taxpayers, as mentioned by the source.

Despite experiencing heavy traffic, the income-tax portal has performed well, the source noted.

The challenge is more significant for the GSTN technology provider, as the government is preparing to introduce GST 2.0, featuring automated returns similar to Income Tax 26A, seamless integration with the I-T portal for data sharing, and a streamlined process for refunds and credits.

GSTN will initiate an open bidding process to select a technology provider to manage the site for seven years starting from October 1, 2024, according to authorities.

Also Read: Income Tax Introduces Form 71 to Facilitate TDS Credit for Previously Reported Income in ITR

Leave a reply