CAG compliance audit report points to lapses in revenue collection

Chennai, October 20, 2022

The compliance audit (Revenue) report of the Comptroller and Auditor General of India (CAG) for the year, ending March 31, 2020, which was tabled in the Legislative Assembly on Wednesday pointed out some lapses related to the non/short levy of taxes, interest, penalty among others, involving an amount of ₹180.15 crore.

Test check records relating to the Goods and Services Tax (GST), commercial taxes, stamp duty and registration fee, and land revenue during the year 2019-20 revealed under-assessments, short levy, loss of revenue and other observations in 1,403 cases, it said.

The CAG also pointed out shortcomings in the common portal for e-way bill system in Tamil Nadu. The portal allowed generation of e-way bills by non-filers of return and taxpayers, whose registrations were cancelled. System also allowed generation of multiple e-way bills for the same invoice and e-way bills for goods value quoted as null, it said. An amount of ₹80.78 crore was payable by those taxpayers, whose registrations were subsequently cancelled. Taxpayers who generated e-way bills did not file GSTR 3B return form and did not pay tax amounting to ₹49.43 crore, the report said.

‘Short collection’
Taxpayers who filed NIL returns after generating e-way bills did not pay tax of ₹8.22 crore, it added. It also pointed to a short collection of ₹12.09 crore in one case due to collection of only penalty, instead of the applicable tax and equivalent amount of penalty. Under value added tax, there were irregularities in the claim of Input Tax Credit to the tune of ₹6.43 crore, it noted. CAG also pointed to lapses in Stamp Duty and Registration fee involving a total of ₹2.29 crore, among others.

[The Hindu]