With the establishment of GST Appellate Tribunal and the incorporation of technologies such as artificial intelligence and machine learning, the central government is not only streamlining litigation but also ensuring a more simplified and efficient tax system for GST (goods and services tax) and income tax, Union Finance Minister Nirmala Sitharaman said.
Over the past several years, India has made significant progress in simplifying its tax framework and improving dispute resolution mechanisms, she said while speaking at an event organised by the Revenue Bar Association in Chennai.
By raising monetary limits for appeals and incorporating tech-driven reforms, the government is making strides in reducing legal disputes and promoting ease of doing business. She noted the recent appointment of Justice (Retd) Sanjay Kumar Mishra as the first President of the GSTAT in Delhi and the creation of 31 State benches. The appointment of judicial and technical members is progressing rapidly, and GSTAT will enhance the overall effectiveness of the GST system, she added.
She urged the Revenue Bar Association to ensure that its members become well-versed in handling technology-driven and AI-powered applications. This will provide valuable insight into the methodologies employed by the Revenue Department, the Central Board of Direct Taxation (CBDT), and the CBIC. The adoption of AI has significantly enhanced the government’s ability to resolve complex cases.
The Finance Minister also announced upcoming reforms in direct taxes, aimed at simplifying the Income Tax Act and reducing disputes. Within six months, the government plans to introduce changes that will make the law more concise and user-friendly, providing greater tax certainty. She urged the Revenue Bar Association to submit detailed suggestions on provisions that should be changed to help streamline the Act and minimise litigation.
In terms of indirect taxes, the 53rd GST Council recommended new monetary limits for appeals — ₹20 lakh for the GSTAT, ₹1 crore for the High Court and ₹2 crore for the Supreme Court. This move is expected to lead to the withdrawal of 7,755 appeals, including 6,710 direct tax appeals and 1,045 indirect tax appeals across various judicial forums, helping reduce the litigation burden on taxpayers.
Urges industry leaders to capitalize on stability and global opportunities
Later, at the Southern India Chamber of Commerce & Industry’s 114th annual meeting, Sitharaman stressed the importance of a stable policy environment, a predictable tax regime and governance continuity amid global uncertainties like geopolitical tensions and trade disruptions. Despite global challenges, India is on track to become a developed economy by 2047, currently contributing 16 per cent to global GDP, and expected to grow at 7 per cent next year, as per the World Bank. India’s leadership in renewable energy is clear, and our efforts in integrating with neighbouring economies, such as Sri Lanka, further highlight our expanding influence, she pointed out.
South India’s strengths are key to India’s overall growth, and we must harness these without succumbing to divisive narratives. The region’s entrepreneurial spirit, paired with manpower from across the country, will drive this growth. Moreover, large infrastructure projects, like freight corridors and defence manufacturing hubs, will further integrate and boost the economy.
With corporate tax cuts in place and the pandemic behind, Sitharaman called on industry leaders to capitalize on the stable policy environment and expand global opportunities, urging them to invest, innovate, and grow both for their success and to contribute to India’s rise on the global stage.
Sitharaman unveiled a plaque for the proposed ‘SICCI Centre for Excellence in Deep Tech’ at Bharathiar University, Coimbatore.