State Mission Mode Project

Commercial Taxes

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

Report on International best practices in VAT administration pdf 434.90 kb
India presents a unique case of a State Level VAT whereas in majority of the countries across the world a system of National Level VAT is administered. This paper elucidates various practices followed internationally by VAT administrations keeping in mind
Keywords : Commercial Taxes, Ministry of Finance, best practices, State MMP, VAT administration, VAT, International best practices, VAT administration, Satyajit
Posted : 18th August, 2009
CT-MMP, a report on current state assessment pdf 611.84 kb
The study reveals significant variation across states both at the process concept/design level and implementation level. For each of the five processes, the parameter across which they vary and the impact it has on tax administration has been discussed in
Keywords : Commercial Taxes, State MMP, Finance, as is report, tax accounting, interstate trade, tax collection, VAT refund, taxpayer services, Satyajit
Posted : 18th August, 2009
Roadmap for the Commercial Taxes MMP pdf 172.88 kb
The vision of the CT-MMP is to create a modern state tax administration that is Efficient, Effective and Equitable and which is conducive to investment, economic growth and free flow of goods and services within the common market of India.
Keywords : Commercial Taxes, State Mission Mode Project, Ministry of Finance, VAT administration, Satyajit, tax collection, TINXSYS
Posted : 18th August, 2009