The overall task includes reorienting functions,
processes, people, technology and resources. Central to the designing exercise
is an integrated ICT-enabled system that will standardize commercial
tax administration across the country and foster a citizen-centric and
business-friendly environment. In particular, M/s Ernst & Young were
The basic design principles for VAT were laid down in the White
Paper on VAT published by the Empowered Committee of State Finance
Ministers, but States and Union Territories have opted to implement VAT in
accordance with local conditions. While sticking to the basic design,
they have individually drafted varying sets of VAT Act, Rules and
Business Procedures. This has resulted in lack of uniformity in the
administration of VAT.
As commercial taxes form the most important revenue
base for States and Union Territories, currently accounting for 60-70%
of the total internal resources generated, certain quarters
articulated the need for standardized commercial tax administration that would
plug loopholes and a foster a citizen-centric dispensation aimed at
The CT-MMP is a step in that direction. The
Government of India's Department of Revenue, which triggered the project,
is also implementing it through the good offices of NISG.
"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."
CT-MMP is aimed at creating nationwide infrastructure that would
facilitate inter-state trade, ensure uniformity and standards in commercial
tax administration, and enable free exchange of information. The
emphasis will be on using ICT to improve the delivery of public service and
strengthen the government's revenue base.
Once implemented, the services to be
provided under the CT-MMP from the standpoint of the taxpayer
The key considerations that were to serve as
guiding principles were:Focus on core business processes that
are to be reengineered with a service-oriented approach so that there is
transformation in commercial tax departments.
As per the terms of reference, the consultants studied the
commercial tax systems of Delhi, Andhra Pradesh, West Bengal and
Following the study, the consultants came out with the following
specific work products.
reports, the consultants made certain recommendations for implementing the
CT-MMP. A workshop involving Commissioners /Deputy Commissioners of
the States was held in May 2007 to introduce them to the
NISG has sent communication to States and UTs
exhorting them to implement the recommendations of the study and take
NISG's assistance if required.
For business queries, contact:
Mr. Sanjiv Mital Chief Executive Officer, NISG
Mr. Vijay Saradhi
Vice President, NISG