A Comptroller and Auditor General (CAG) report tabled in the Assembly on Thursday has highlighted significant revenue lapses within the Goods and Services Tax (GST) and Stamps and Registrations Departments.
GST Revenue Loss of ₹755.49 Crore
According to Report No. 7 of 2024 for the period ending March 2022, a compliance audit conducted by the CAG uncovered under-assessment, short levy, and revenue loss totalling ₹755.49 crore in the Commercial Tax Department. This was based on a detailed examination of 418 centralized audit cases, 61 detailed audit cases, and 10 Local GST Offices (LGTSTOs) under range audits during the 2021-22 period.
Upon notification, the Commercial Tax Department acknowledged deficiencies in 46 cases and managed to recover ₹2.64 crore.
Revenue Shortfall in Stamps and Registrations
The Department of Stamps and Registration also faced scrutiny, with a test check of records across 42 unit offices revealing under-assessment, short levy, and revenue losses amounting to ₹193.08 crore. These discrepancies were outlined in 143 audit paragraphs.
Out of these, the department accepted the findings in 31 paragraphs and recovered ₹4.84 crore from earlier identified cases.
CAG Criticizes Low Recovery Rates
The CAG report emphasized that the recovery rate for the Department of Stamps and Registrations from accepted cases was a mere 5.08%. The report urged the department to take prompt and effective measures to recover dues in all accepted cases.
Key Recommendations
The CAG has recommended that both the Commercial Tax Department and the Department of Stamps and Registrations prioritize the recovery of pending dues and strengthen their audit mechanisms to prevent revenue leakages.
This report underscores the need for robust compliance and vigilance to safeguard public revenue and ensure efficient tax administration.
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