CAG finds ₹998.85 crore tax loss in Haryana revenue audit

This audit examined the revenue receipts and tax administration of the Government of Haryana for the period ended March 2024. It focused on compliance in State Excise, Sales Tax/VAT, Stamp Duty, and Vehicle Taxes.

Government of Haryana (Departments: Excise and Taxation, Stamp Duty and Registration, Transport)

• CAG found under assessment/short levy of tax/loss of revenue aggregating to ₹ 998.85 crore in 7,144 cases across various departments.
• Departments acknowledged deficiencies of ₹ 814.62 crore but recovered only ₹ 0.24 crore during the year.
• Subject Specific Compliance Audit on Works Contract/Construction services under GST revealed compliance irregularities of ₹ 389.07 crore.
• CAG noted that granular records for 18 out of 30 taxpayers were not produced, preventing examination of ₹ 37.69 crore in identified risks.
• Non-levy of tax on closing stock resulted in a loss of ₹ 6.67 crore.
• Application of lower tax rates led to under assessment of ₹ 3.31 crore plus leviable interest of ₹ 2.47 crore.
• Allowing concessional rates without verification resulted in under assessment of ₹ 0.98 crore and leviable penalty of ₹ 2.93 crore.
• Incorrect grant of Input Tax Credit (ITC) resulted in a loss of ₹ 2.32 crore including penalty.
• Stamp duty short realisation of ₹ 34.08 crore due to using agricultural land rates for residential/commercial plots.
• Short levy of stamp duty of ₹ 30.65 crore due to misclassification of collaboration agreements.
• Non/short levy of stamp duty of ₹ 9.93 crore on mortgage deeds.
• Irregular exemption of stamp duty of ₹ 4.90 crore on non-bonafide compromise decrees.
• Suspected misappropriation of Government money of ₹ 5.43 crore in the Regional Transport Authority, Panchkula.
• CAG recommended instituting a mechanism for obtaining granular taxpayer records and ensuring strict application of tax provisions.

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