CAG Report Highlights ₹755.49 Crore Revenue Loss in GST Compliance by Commercial Tax Department

This CAG report underscores the critical need for stringent audits and immediate remedial action to curb revenue leakage.

The Comptroller and Auditor General (CAG) of India has identified significant revenue losses amounting to ₹755.49 crore due to under-assessment, short levy, and revenue loss within the Goods and Services Tax (GST) framework of the Commercial Tax Department. This was disclosed in Report No. 7 of 2024, tabled in the Assembly on Thursday, covering the period ending March 2022.

Key Findings from the Audit

The CAG conducted a comprehensive compliance audit for 2021-22, which included:

  • Centralized Audit: Examination of 418 cases.
  • Detailed Audit: Assessment of 61 cases.
  • Range Audit: Review of 10 Local GST Offices (LGTSTOs).

These audits uncovered revenue discrepancies aggregating to ₹755.49 crore. Following the audit findings, the Commercial Tax Department acknowledged under-assessment and other deficiencies in 46 cases, leading to a recovery of ₹2.64 crore.

Department of Stamps and Registration Observations

The CAG report also scrutinized the Department of Stamps and Registration, auditing records from 42 unit offices. It revealed:

  • Under-assessment, short levy, and revenue loss totaling ₹193.08 crore.
  • These findings were detailed across 143 paragraphs.

During the audit period, the department recovered ₹4.84 crore related to 31 paragraphs from previous years. However, the recovery rate for accepted cases was only 5.08%. The CAG urged the department to expedite recovery efforts for pending dues in acknowledged cases.

Recommendations

The report calls for urgent corrective measures by the respective departments to address systemic deficiencies and enhance revenue collection efficiency. It emphasizes proactive recovery efforts to mitigate future revenue losses and improve compliance with GST and other taxation frameworks.

Conclusion

This report underscores the critical need for stringent audits and immediate remedial action to curb revenue leakage. The findings highlight areas for improvement within the Commercial Tax Department and the Department of Stamps and Registration, ensuring better fiscal accountability and governance.

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