Report of the Comptroller and Auditor General of India on State Revenues for the period ended March 2024- Report No. 3 of 2026

What did the audit examine?

The audit examined Karnataka State's revenue collection for the fiscal year 2023-24, focusing on tax administration across departments including Goods and Services Tax, Stamp Duty, State Excise, and Motor Vehicle Taxes.

Who / what it concerns

Government of Karnataka

What the auditor found

• Short levy of Stamp Duty and Registration Fee due to misclassification of Power of Attorney: ₹15.06 crore
• Short levy due to misclassification of Agreements of Sale: ₹18.84 crore
• Short levy due to improper execution/classification of release deeds: ₹14.20 crore
• Short levy due to misclassification of mortgage deeds: ₹6.69 crore
• Short levy due to undervaluation of Undivided Share: ₹9.00 crore
• Short levy due to incorrect classification of Joint Development Agreements: ₹32.82 crore
• Short levy due to non-disclosure of facts: ₹14.10 crore
• Short levy due to undervaluation of properties: ₹4.05 crore
• Loss of revenue on Additional Excise Duty due to delay in adopting revised Declared Price: ₹58.13 lakh
• Short levy of tax due to misclassification of leased Private Service Vehicles: ₹82.63 lakh
• Non-collection of Green Tax: ₹90.46 crore
• Non-collection of Road Safety Cess: ₹4.68 crore

Points worth noting

• Short levy of Stamp Duty and Registration Fee across multiple instruments totaled ₹169.18 crore
• Non-collection of Green Tax led to a loss of ₹90.46 crore
• Over 47,000 vehicles remained unregistered after expiry of temporary registration between 2019-2024
• 3.87 lakh vehicles with expired fitness certificates continued to ply on roads
• Only 3.5% of vehicle-related applications were processed online despite mandatory online applications since November 2021