FM to review CBIC and CBDT performance; Refund delays, vigilance pendency in focus in June

In a high-level performance review scheduled over two days, Finance Minister Nirmala Sitharaman is slated to hold meetings this month with senior tax officials from the Central Board of Indirect Taxes and Customs (CBIC) and the Central Board of Direct Taxes (CBDT), sources said. In order to review the operational performance of field formations, she will meet principal chief commissioners on June 20 and June 23. The meetings will focus on timely processing of refunds, delays in grievance redressal, and vigilance pendency – key issues affecting taxpayer experience and administrative efficiency.

According to sources, the interaction with Principal Chief Commissioners of CBIC on June 20 will specifically examine delays in Goods and Services Tax (GST) and Customs refunds, particularly those pertaining to exporters and units in Special Economic Zones (SEZs). Refund claims pending beyond 60 days are expected to face scrutiny, with zones likely to be asked for detailed analytical breakdowns of pendency trends, rejection rates, and root causes.

The Finance Minister is also expected to take stock of cargo dwell time at ports and airports. Data on clearances facilitated through the Risk Management System (RMS), instances of interdictions, and timelines for physical examination are to be presented zone-wise. Field formations may be questioned on discrepancies in timelines and efficiency metrics, with the emphasis on minimising delays that hamper trade flows.

High pendency in investigations by the Directorate General of GST Intelligence (DGGI) – particularly cases that have been open for over 180 days – is likely to come under sharp focus. “The FM is expected to push for time-bound completion of pending vigilance matters and greater accountability in physical verification processes,” sources said, adding that the government wants a dual emphasis on compliance and trade facilitation.

CBDT Review

On June 23, the Finance Minister will hold a similar interaction with Principal Chief Commissioners of the Income Tax Department. The primary focus here will be on improving taxpayer service delivery, litigation management, and enhancing systemic accountability.

Sources told Moneycontrol that age-wise pendency of appeals will be reviewed, with an emphasis on fast-tracking legacy cases to reduce the litigation burden on both the department and taxpayers. The meeting will also examine refund delays, particularly those caused by non-processing of tax returns under Section 143(1) of the Income Tax Act, and system glitches delaying rectification requests.

Zones will be expected to present detailed data on pending Centralised Processing Centre (CPC) tickets, average resolution timelines, and open grievances under the e-Nivaran platform. Regions with large backlogs could face questions about operational inefficiencies and lack of follow-through on redressal mechanisms.

In line with recent government emphasis on probity and efficiency, vigilance matters will again be in focus. The Finance Minister is likely to review disciplinary cases and vigilance proceedings pending beyond the permissible timelines, and seek justification from zones that have not acted for months.

Sources also indicate that the FM may take note of best practices adopted by high-performing regions – in both CBIC and CBDT – such as process automation, data-driven monitoring, and proactive grievance resolution. The idea is to replicate these models across the country to ensure a taxpayer-centric, technology-enabled, and transparent ecosystem in the revenue administration.

Source: moneycontrol