₹2,050.91 crore GST revenue arrears, 7,183 cases pending as of 31 March 2023

This audit examined the effectiveness of the E-Way Bill system and the Madhya Pradesh Commercial Tax Department's oversight of GST payments and return filings for the financial year ended 31 March 2023.

Government of Madhya Pradesh, Commercial Tax Department (GST administration)

• CAG found 179 E-Way Bills (₹13.57 crore) generated by non-filers and 405 by NIL-filers, indicating a lack of linkage between E-Way Bill and return filing systems.
• CAG identified under-reporting of turnover of ₹3.68 crore and short payment of tax of ₹52.14 lakh due to multiple E-Way Bills generated on the same invoices.
• CAG noted that 11,137 cancelled taxpayers (85% of 14,105) were left without follow-up regarding return filing compliance.
• CAG reported that 8 out of 10 Circles did not conduct any scrutiny of returns from 2017-18 to 2020-21.
• CAG found that no departmental audits were conducted even after six years of GST implementation, with SOPs issued only in February 2023.
• CAG flagged 652 high-risk deviations totaling ₹11,401.74 crore, including ITC mismatches of ₹1,636.01 crore and turnover mismatches of ₹6,382.04 crore.
• CAG recommended integrating E-Way Bill and GST return systems, auto-blocking E-Way Bill generation for cancelled/non-filing taxpayers, and linking with the VAHAN vehicle database.

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