Role of States

The exercise on monitoring select Global Indices to drive Reforms and Growth (GIRG) envisages that the most important role in this far-reaching, over-arching initiative be played by States/UTs, with support from line Ministries/ Departments at the Centre. Central Line Ministries/ Departments are in process of identifying reform areas in consultation with all stakeholders. The inputs expected from State/ UTs towards improving citizen service delivery, enhancing quality of life and ease of doing business include the following:

The aim of the exercise is to boost cooperative and competitive federalism. All nodal Ministries/ Departments for all identified Global Indices are in process of preparing Reform Action Plans, on lines of the Business Reform Action Plan (BRAP) prepared by the Department for Promotion of Industry and Internal Trade (DPIIT) for the Ease of Doing Business Index.

The Reform Actions would highlight the broad actions to be undertaken; States/UTs may decide the exact path and process to be followed for their respective reforms. An example of a Reform Action from BRAP 2020-21 and related activities is given below.

Reform Area: Paying Taxes	Objectives
Reform Action 1: Set up service centres to assist taxpayers for e-filing of returns under the State/Union Territory GST Act Reform Action 2: Establish a helpline providing basic services such as assisting users in preparing and filing returns under the State/Union Territory GST Act Reform Action 3: Constitute an authority for advance ruling under the State Goods Service Tax and publish details of application procedure and checklist on the Department's website Reform Action 4: Constitute an appellate authority for advance ruling under the State Goods Service Tax and publish details of application procedure and checklist on the Department's website	E-filing service centres can be an effective mechanism to assist taxpayers in e-filing and payment. These centres can assist taxpayers for e-filing of returns under the State/UT GST Act, thereby allowing greater use of the online system. Wide availability of such centres can also increase adoption of online filing and payment mechanism. A helpline number can provide real-time information and support to users. The State/UTs should establish a helpline providing basic services such as assisting users in preparing and filing returns under the State/UT GST Act. Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) is an effective mechanism to provide certainty in the tax liability and help reduce the risk of litigation in future. In accordance with the provisions of the State/UT GST Act, all States/UTs are required to set up AAR for seeking advance ruling over GST levy and AAAR to hear appeals of the applicant aggrieved by any advance ruling pronounced by AAR.

Reform Area: Paying Taxes

Objectives

Reform Action 1: Set up service centres to assist taxpayers for e-filing of returns under the State/Union Territory GST Act

Reform Action 2: Establish a helpline providing basic services such as assisting users in preparing and filing returns under the State/Union Territory GST Act

Reform Action 3: Constitute an authority for advance ruling under the State Goods Service Tax and publish details of application procedure and checklist on the Department's website

Reform Action 4: Constitute an appellate authority for advance ruling under the State Goods Service Tax and publish details of application procedure and checklist on the Department's website

E-filing service centres can be an effective mechanism to assist taxpayers in e-filing and payment. These centres can assist taxpayers for e-filing of returns under the State/UT GST Act, thereby allowing greater use of the online system. Wide availability of such centres can also increase adoption of online filing and payment mechanism.
A helpline number can provide real-time information and support to users. The State/UTs should establish a helpline providing basic services such as assisting users in preparing and filing returns under the State/UT GST Act.
Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR) is an effective mechanism to provide certainty in the tax liability and help reduce the risk of litigation in future. In accordance with the provisions of the State/UT GST Act, all States/UTs are required to set up AAR for seeking advance ruling over GST levy and AAAR to hear appeals of the applicant aggrieved by any advance ruling pronounced by AAR.

Act reference: Chapter XVII on ‘Advance Ruling’ of State/UT GST Act.