The CAG has found many discrepancies in the processes followed by the Gujarat government in the assessment and collection of Goods and Services Tax (GST) in the state. CAG’s audit report on Revenue Sector for the year ended on March 31, 2018 was tabled in the Gujarat Legislative Assembly and the national auditor found “irregularities” in 537 cases, out of the total 18,093 test-checked assessments, which “resulted in under assessment of Rs 138.89 crore during the year 2017-18”. the CAG said, “The audit pointed out similar omissions in previous years also. There is a need for the government to improve the internal control system, including strengthening of internal audit, so that recurrence of such cases can be avoided.” “Out of the 5,15,948 dealers registered under the Gujarat VAT Act as on June 30, 2017, 4,61,156 dealers were finally granted registration certificates. The remaining 54,792 dealers, being 10.61 per cent, of the existing dealers were not migrated to GST regime,” the CAG noted. “The Gujarat government was hamstrung in the implementation of provisions of the GGST Act as it had limited role in the matters. Further, the department needs to sort out legacy issues like assessment of pre-GST cases, recovery of arrears and grant refund of the tax relating to pre-GST regime expeditiously,” the CAG said.
