4,99,436 vehicles on roads with expired fitness certificates, CAG finds

This audit examined the compliance of seven departments of the Government of Gujarat, specifically focusing on the Finance Department's oversight of GST payments and the Ports and Transport Department's management of vehicle registrations and permits, for the period ended March 2024.

Government of Gujarat (Finance Department, Ports and Transport Department, Revenue Department, Roads and Buildings Department, Forest and Environment Department, Home Department, and Energy and Petrochemicals Department)

• CAG found deviations from GST provisions in 291 cases involving ₹ 2,606.62 crore.
• CAG noted that the Department failed to produce records for 63 of 65 sampled taxpayers, preventing examination of mismatches amounting to ₹ 1,234.71 crore.
• CAG identified non-realization of potential renewal fees of ₹ 88.58 crore due to 5,36,634 vehicles having expired Registration Certificates (RCs) without renewal or destruction reporting.
• CAG found that 4,99,436 vehicles were operating with expired fitness certificates, resulting in leviable fees and penalties of ₹ 980.15 crore.
• CAG reported a short levy of fees of ₹ 1.60 crore due to incorrect rates applied for 79,762 duplicate Driving Licenses issued between April 2021 and July 2023.
• CAG recommended strengthening monitoring mechanisms for GST registration cancellations and ensuring mandatory filing of GSTR-10 by cancelled taxpayers.

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