Finance Minister Sitharaman Urges GST Officers to Balance Politeness with Procedural Compliance

Finance Minister Nirmala Sitharaman addressed GST officers on Friday, emphasizing the importance of politeness and empathy when dealing with honest taxpayers while encouraging the use of technology for faster approvals and grievance resolution.

Speaking at the inauguration of the CGST building in Ghaziabad, Sitharaman urged field formations to proactively implement trade facilitation measures, stating, "There is no iron wall between you and trader, there is thin air. You can understand where the difficulty is, rather than muddy it up any further."

The Finance Minister highlighted the need for timely conclusion of disciplinary proceedings against Central Board of Indirect Taxes and Customs (CBIC) officers. She emphasized that this would send a clear message that misconduct, dereliction of duty, or unethical behavior would not be tolerated.

Sitharaman articulated that the ultimate goal of tax administration is to simplify processes for honest taxpayers, requiring officers to follow standard operating procedures while demonstrating greater empathy and courtesy.

"It is important that you remain polite. The next-generation GST is not just about rates, slabs, simplification. It should make the taxpayer feel different," she stated, clarifying that politeness should not compromise enforcement efforts.

While advocating for honorable treatment of honest taxpayers, the Finance Minister also stressed that established protocols should be followed when dealing with non-compliant individuals. "But don't look at everybody with suspicion," she cautioned.

"I do not want comfort given to dishonest taxpayers in any way. You do not have to be subjective with them, there is a laid protocol, deal with them in that way...be polite and get your work done as per the SOP," Sitharaman advised.

The minister encouraged GST officers to leverage technology to reduce the compliance burden on taxpayers seeking registration.

"Technology and risk-based parameters must do the heavy lifting and not the taxpayer. We do not want anybody from the field formation adding one little more burden or onus on the taxpayer. Technology should be used. You do smart inquiry into the situation and if necessary the taxpayer may be approached for something. But no shifting of onus on him saying give me more papers, give me this, give me that," she explained.

Sitharaman also requested officers to identify recurring grievances in Central GST (CGST) zones and address the root causes of these issues.

Regarding disciplinary proceedings against departmental officers, she emphasized that swift resolution reinforces accountability within the organization while dispelling public perception of indifference or protectionism among officers.

"The motto for disciplinary matters therefore should be: Galat kiya hai toh khair nahi, sahi kiya toh koi bhaye nahi (If you do wrong, you won't be forgiven, if you do right, you need not fear)," Sitharaman stated.

She concluded by urging that pending GST investigations be closed expeditiously with well-reasoned, evidence-based quality orders to reduce litigation costs.