CAG finds ₹1,165.04 crore GST revenue loss in Odisha

Who it concerns: Government of Odisha, specifically the Finance and Excise Departments.

What the auditor found

• CAG found under-assessment or loss of revenue aggregating to ₹1,165.04 crore in 1,160 cases during 2022-23.
• Six taxpayers generated 2,340 EWBs for an assessable value of ₹79.81 crore (tax implication ₹11.90 crore) but did not file GST returns.
• Fourteen taxpayers generated 1,113 EWBs for an assessable value of ₹80.30 crore (tax implication ₹13.78 crore) using 235 suspicious vehicles, including stolen, surrendered, or cancelled vehicles.
• Four taxpayers generated 96 EWBs for an outward supply of ₹5.59 crore (tax liability ₹0.99 crore) but filed Nil returns without departmental action.
• CAG noted deficiencies in enforcement, including inadequate monitoring via RFID, lack of adequate personnel, and insufficient patrolling vehicles.
• Arrears of revenue as on 31 March 2023 amounted to ₹16,463.04 crore, with ₹8,697.28 crore outstanding for more than five years.

Also in the document

• CAG reported that 14 taxpayers used 235 suspicious vehicles (including stolen and scrapped vehicles) to generate EWBs for goods worth ₹80.30 crore.
• CAG identified a total revenue loss/under-assessment of ₹1,165.04 crore in 2022-23, of which departments accepted deficiencies of ₹1,148.63 crore.
• CAG found that 6 taxpayers who generated EWBs for ₹79.81 crore worth of goods completely failed to file GST returns, resulting in an uncollected tax liability of ₹11.90 crore.