Parliamentary panel asks revenue dept. to formulate concrete action plan to recover tax arrears
A parliamentary panel on Wednesday asked the revenue department to formulate a concrete action plan to recover tax arrears, estimated at more than ₹21 lakh crore.
The report of the Standing Committee on Finance, which was tabled in Parliament, said the revenue department seems to be “caught up in the vicious cycle to tax arrears”, as about ₹18.68 lakh crore in direct tax and ₹2.95 lakh crore in indirect tax are outstanding in the form of tax arrears.
The committee noted that the finance ministry had initiated various legislative and administrative measures, besides “special efforts” to realise and recover tax arrears.
However, it pointed out that with respect to direct taxes, 94% of the tax arrears fall under the category of ‘demand difficult to recover’, while for indirect taxes, 88% of arrear demand falls under the category of ‘non collectible’.
“The Committee would, therefore, reiterate their recommendation for a concrete action plan and a clear cut roadmap to clear the backlog in a time-bound fast tract mechanism,” it said.
The Committee also said it was concerned about various contentious issues arising out of GST and recommended the ministry to set up an exclusive GST Tribunal for settlement of disputes pertaining to the Goods and Services Tax.