CAG finds GST refund delays, compliance gaps in Gujarat
Ahmedabad: The Comptroller and Auditor General (CAG) flagged inefficiencies in Gujarat's Goods and Services Tax (GST) administration, citing delays in refund processing, oversight gaps in return filing, and lapses in transitional credit verification. The findings, presented in the Gujarat assembly, highlight significant revenue risks.
The audit examined 1,262 refund claims between July 2017 and July 2020, revealing delays in 45% of acknowledgements, some stretching up to 385 days, while 15% of refund orders took as long as 347 days. Provisional refunds for zero-rated supplies faced delays of up to 44 days, according to the report.
CAG also pointed out irregular approvals under the inverted duty structure, leading to incorrect refunds of Rs 91.17 lakh, and excess refunds of Rs 2.33 crore due to input tax credit (ITC) mismatches. Refunds were frequently issued without proper documentation, with some cases involving duplicate or time-barred claims.
A major concern was the absence of post-audit checks, which resulted in double payments and unauthorised refund sanctions. The audit recommends stricter monitoring, enhanced compliance mechanisms, and a stronger grievance redressal system.
