Economic Affairs Secretary Ajay Seth gets additional charge of Revenue

With barely a month-and-a-half to go for the Union Budget, the Finance Ministry has witnessed a major change in its upper echleons with the government on Tuesday announcing that Economic Affairs Secretary Ajay Seth will take additional charge of the revenue department. Seth will fill in for outgoing Revenue Secretary Sanjay Malhotra, who has been appointed the Governor of Reserve Bank of India with effect from Wednesday, December 11.

“The competent authority has approved assignment of additional charge of the post of Secretary, Department of Revenue, to Ajay Seth, with immediate effect till the appointment of a regular incumbent or until further orders, whichever is earlier,” an order issued by Department of Personal and Training (DOPT) read.

As Revenue Secretary is ex-officio Secretary to the GST Council, Seth’s immediate responsibility will be to conduct the proceedings of the 55th meeting of GST Council, scheduled to take place on December 21, in Jaisalmer. The meeting is expected to consider proposals for restructuring rates on insurance premia along with many other goods and services.

Till a regular appointment is made, Seth will also be expected to supervise the progress of reviewing the Income Tax Act. This year, the Budget proposed a comprehensive review of the tax law. The purpose is to make the Act concise, lucid, easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the tax payers. It will also bring down the demand embroiled in litigation. This exercise is proposed to be completed in six months i.e by December-end.

For the last two years, Sanjay Malhotra was at the helm of the Revenue Department which is responsible for monitoring, supervision and administration of matters relating to all the Direct and Indirect Union Taxes through two statutory Boards namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). He worked closely with Finance Minister Nirmala Sitharaman and was part of all key pre-Budget consultations.

With Malhotra’s departure, Seth will have to step in towards the fag end as the Revenue Secretary.