CAG finds ₹31.46 crore tax unpaid by 15 taxpayers with 580 E-Way Bills

This audit examined the revenue sector and economic, social, and general sectors of the Government of National Capital Territory of Delhi (GNCTD) for the year ended 31 March 2023, with specific compliance checks covering GST periods from 2018-19 to 2021-22.

Who it concerns: Government of National Capital Territory of Delhi (GNCTD), including the Department of Revenue, Department of Trade and Taxes, Delhi Subordinate Services Selection Board, Department of Energy, Department of Health and Family Welfare, Department of Industries, Department of Information Technology, Public Works Department, Department of Transport, and Urban Development Department.

What the auditor found

• CAG found short payment of Stamp Duty and Registration Fee of ₹ 1.91 crore due to incorrect application of Agricultural rates.
• CAG identified irregular claims of Input Tax Credit and systemic lapses in the E-Way Bill system, including taxpayers filing nil returns despite generating E-Way Bills.
• CAG noted wasteful expenditure of ₹ 1.05 crore by the Delhi Subordinate Services Selection Board on conducting examinations for Junior Engineer posts.
• CAG reported avoidable payment of ₹ 1.93 crore by the Department of Health and Family Welfare due to a deficient contract.
• CAG identified unfruitful expenditure of ₹ 29.45 crore by the Department of Industries.
• CAG found avoidable payment of ₹ 5.63 crore by the Public Works Department on deviated quantities relating to dewatering.
• CAG reported loss of interest of ₹ 5.50 crore by the Department of Transport due to delay in investment of surplus funds.
• CAG noted avoidable payment of ₹ 1.56 crore by the Urban Development Department.
• CAG observed that 28 cancelled taxpayers had not filed GSTR-10 returns, involving a tax implication of ₹ 99.39 crore, and the Department had not initiated action to assess pending liabilities.

Also in the document

• CAG found that 15 taxpayers generated 580 E-Way Bills with an assessable value of ₹ 252.66 crore and tax of ₹ 31.46 crore but did not file GSTR3B returns, resulting in no tax liability being discharged.
• CAG reported that 28 taxpayers whose registrations were cancelled generated 3,629 E-Way Bills involving an assessable value of ₹ 734.75 crore and a tax implication of ₹ 99.39 crore, yet none filed the required GSTR-10 returns.
• CAG noted that test-checks of records for 22 units revealed non/short levy of tax/fees and other irregularities involving ₹ 220.59 crore in 145 cases, to which the Departments did not provide any reply.