CAG finds ₹2155.65 crore GST case deviations in Rajasthan audit

This audit examined the compliance of the Government of Rajasthan's revenue and expenditure sectors for the year ended 31 March 2023. It covered four revenue-earning departments (Commercial Taxes, Land Revenue, Registration & Stamps, State Excise) and selected expenditure departments.

Government of Rajasthan (specifically Commercial Taxes, Land Revenue, Stamp Duty and Registration, State Excise, Personnel, Urban Development, Medical/Health, Higher Education, Local Self Government, and Sainik Kalyan Vibhag departments).

• Total monetary value of findings: ₹584.81 crore across 24 paragraphs.
• GST: Deviations in 286 cases involving ₹2155.65 crore due to mismatches in Input Tax Credit (ITC) and tax liability.
• GST: 23 firms identified as bogus/non-existent, preventing recovery of demand.
• GST: 72 taxpayers in Sirohi Circle did not file returns despite notices; department did not initiate assessment action.
• Land Revenue: Non-recovery of ₹7.23 crore difference in value of allotted pasture land for mining.
• Excise: Multiple instances of short recovery of duties, license fees, and penalties on IMFL, beer, and liquor shops.
• Expenditure: Unfruitful expenditure of ₹8.35 crore on 12 DEICs due to non-recruitment and non-procurement of equipment (₹21.87 crore) after 3-5 years.
• Expenditure: Idle investment of ₹1.85 crore in Higher Education Department.
• Expenditure: Short recovery of ₹1.17 crore urban assessment by Urban Improvement Trust, Jaisalmer.
• Recommendations: Increase business audit selection rates, strengthen registration/cancellation mechanisms to prevent fake units, and build validation controls in the E-Way Bill system.

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