Report No. 8 of 2025, Government of Madhya Pradesh, Report of the Comptroller and Auditor General of India on Goods and Services Tax for the year ended 31 March 2023

What did the audit examine?

The audit examined the Goods and Services Tax (GST) system in Madhya Pradesh for the year ended 31 March 2023, focusing on the E-Way Bill System and departmental oversight of GST payments and return filing.

Who / what it concerns

Government of Madhya Pradesh (Commercial Tax Department)

What the auditor found

• SGST revenue rose from ₹18,508.49 crore in 2018-19 to ₹23,396.79 crore in 2022-23
• Arrears of revenue as on 31 March 2023: ₹2,050.91 crore (₹4.77 crore over five years old)
• 179 EWBs (₹13.57 crore) generated by non-filers, 405 EWBs (₹3.48 crore) by NIL-filers
• Tax short payment: ₹0.94 crore from non-filers/NIL-filers
• Three composition taxpayers generated six inter-State EWBs resulting in short levy of tax of ₹3.85 lakh
• Seven taxpayers generated 77 EWBs on same/similar invoices, resulting in under-reporting of turnover of ₹3.68 crore and short payment of tax of ₹52.14 lakh
• Nine EWBs generated using two-wheelers, scrapped, stolen and passenger vehicles
• 7,942 non-filers identified
• GSTR-3A issued in 9,076 cases but best judgement assessments done in only 410 cases (₹8.59 crore)
• Out of 14,105 cancelled taxpayers, only 1,009 filed GSTR-10
• Centralised audit flagged 652 high-risk deviations of ₹11,401.74 crore (394 ITC/tax liability mismatches of ₹1,636.01 crore, 36 turnover mismatches of ₹6,382.04 crore)
• Detailed audit of 70 taxpayers showed deviations of ₹4,899 crore (ITC mismatches: ₹4,384.01 crore, tax liability mismatches: ₹514.99 crore)

Points worth noting

• ₹11,401.74 crore in high-risk deviations flagged by centralised audit
• ₹6,382.04 crore in turnover mismatches
• ₹4,899 crore in deviations from detailed audit of 70 taxpayers
• 85% of 14,105 cancelled taxpayers (11,137) left without follow-up