The maturity of VAT implementation varies across States and the need has been strongly felt for streamlining VAT administration through citizen-centric, service-oriented processes, and establishing a certain degree of standardization with respect to Commercial Tax (CT) administration. Since the CT departments mainly interface with businesses and often account for 60% - 70% of the total revenue of the States and UTs, their functioning can directly affect the attractiveness of a State as a business destination.
In this context the Commercial Taxes Mission-Mode Program (CT-MMP) has been conceived under the National e-Governance Plan (NeGP) of the GoI.
In order to improve the efficiency of VAT administration, it is important that administrative procedures are simplified and processing timelines are reduced by usage of computerized systems. Faster grant of registration and electronic processing of VAT returns would be important. CT-MMP has provided various change recommendations to facilitate these. Some of the important e-Governance initiatives have been recommended as part of CT-MMP is:
- Electronic filing of returns
- Electronic clearance of refunds
- Electronic payment of tax
- Online dealer ledger
- Online issuance of CST statutory forms through TINXSYS
- Facility to dealer to obtain various online information services