Delhi: CAG flags GST lapses, untargeted power subsidy, wasteful expenditure
The Comptroller and Auditor General (CAG) has flagged revenue leakages, procedural lapses and avoidable expenditure across several Delhi government departments for 2022-23, identifying irregularities running into thousands of crores in taxes and raising concerns over electricity subsidies, public procurement and project execution. The report was tabled by chief minister Rekha Gupta in the Delhi Assembly on Friday.
The report said test checks detected tax and fee irregularities amounting to Rs.220.59 crore in 145 cases, with none of the 22 departments submitting replies to the audit findings.
The report, comprising chapters on the revenue and economic, social and general sectors, said Delhi’s total revenue receipts rose from Rs.43,112.60 crore in 2018-19 to Rs.62,703 crore in 2022-23. Tax revenue contributed Rs.47,363 crore, non-tax revenue Rs.581 crore and grants-in-aid from the Centre Rs.14,759 crore in 2022-23.
A performance audit of the Goods and Services Tax (GST) E-Way Bill system flagged “systemic weaknesses”, including ineligible taxpayers continuing under the composition scheme, taxpayers generating E-Way bills despite filing nil or no GST returns, multiple bills against the same invoices and transactions by cancelled taxpayers.
An E-Way Bill is a mandatory document generated on a central government portal before transporting consignments valued above Rs.50,000.
“Five taxpayers generated 759 E-way bills but did not discharge tax liabilities of Rs.4.68 crore on outward supplies worth Rs.33.89 crore. Fifteen taxpayers generated 580 E-Way bills involving an assessable value of Rs.252.66 crore and tax of Rs.31.46 crore without filing returns… 28 cancelled taxpayers generated 3,629 E-Way bills involving Rs.734.75 crore, with tax implications of Rs.99.39 crore, but failed to file final returns,” the report states.
A separate GST compliance audit found 344 instances of non-compliance among 70 taxpayers, involving revenue implications of Rs.3,071.92 crore and turnover mismatches of Rs.3,710.17 crore. Another case involved irregular input tax credit claims of Rs.89.35 lakh, with additional interest and penalty liabilities of Rs.72.70 lakh each.
