Audits Comptroller & Auditor General
CAG finds ₹15.80 crore tax liability unassessed after registrations cancelled
This audit examined the compliance of six departments of the Government of Gujarat, including Finance, Revenue, and Roads and Building, for the period ended March 2023.
₹15.80 croreCAG reported that the Department did not assess tax liability of ₹15.80 crore for taxpayers whose registrations wer…
It focused on tax collection, land allotment charges, and specific schemes like the E-Way Bill system and Composition Levy Scheme.
Who it concerns: Government of Gujarat (specifically the Finance, Revenue, Roads and Building, Home, Science and Technology, and Energy and Petrochemicals Departments).
What the auditor found
- CAG found that Stamp Duty of ₹34.07 crore was not levied or short levied in 142 land allotment cases.
- CAG identified that Conversion Tax of ₹12.52 crore was not levied or short levied in 147 cases involving change in land use.
- CAG noted that Penalty of ₹17.40 crore was not levied or short levied in 34 cases involving agricultural land for industrial use.
- CAG found that Premium of ₹28.79 crore was short levied in 210 cases related to conversion of agricultural land.
- CAG observed that Premium of ₹19.35 crore was not levied in cases involving rural land under 'new and restricted tenure'.
- CAG found that Interest of ₹5.74 crore was not levied or short levied in 21 cases.
- CAG noted that tax of ₹15.80 crore was not assessed on 1,901 E-Way Bills generated by cancelled taxpayers.
- CAG found that tax of ₹1.49 crore was suppressed by two taxpayers who filed nil returns despite generating E-Way Bills.
- CAG recommended the Government link the GSTN Portal and E-Way Bill Portal to improve access for tax officers.
- CAG recommended the Department develop real-time alerts for when Composition Scheme taxpayers breach turnover limits.
Also in the document
- CAG reported that the Department did not assess tax liability of ₹15.80 crore for taxpayers whose registrations were cancelled retrospectively, yet who continued to generate E-Way Bills.
- CAG found systemic lapses in the Revenue Department where significant amounts (over ₹100 crore combined across Stamp Duty, Conversion Tax, and Penalties) were not collected or were short levied over a period from 2014-15 to 2022-23.
- CAG noted that jurisdictional authorities were unaware of enforcement actions taken against taxpayers because information was not shared by Enforcement Divisions.
How this was written
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The original document
Comptroller & Auditor General of India (CAG) — audit reports
Audit report · Ref. Report No. 5 of 2025 · 2025
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