Finance Minister Shri Pranab Mukherjee has stressed on the importance of computerization of Commercial Taxes. While presenting the Union Budget 2011-12 in Lok Sabha he said that Mission Mode Projects for computerization of Commercial Taxes in States will allow States to align with the roll out of GST. Funds have been released for 31 such projects received from the States and Union Territories (UTs). Most of the States and UTs have already enabled the facility of dealers making electronic payments. A number of States have already started accepting Electronic Tax Returns and issuing forms required for inter-state trade.

IT modernization for tax administration: mission projects fund state computerization to enable electronic payments and e returns. The Government initiated Mission Mode Projects to computerize state commercial tax systems and released central funds to support state and UT projects. The projects emphasize electronic payment facilities for dealers, adoption of electronic tax return filing, and issuance of electronic forms required for inter state trade to align state tax administration with GST-era digital compliance.