Mumbai: A CAG compliance audit for the year 2023 tabled in the state legislative assembly on Wednesday has revealed systemic issues in the E-Way Bill System which helps to check tax evasion and shore up GST collections. The audit, which covered 51 taxpayers by examining records from 2018 to 2022, found deficiencies like taxpayers generating EWB after the cancellation of registration, generating EWB but filing ‘nil’ returns, generating EWB using invalid vehicles, and abnormal high-value EWBs.Of the 51 taxpayers, the department cancelled the registrations of 43 across 10 divisions, including 11 for failure to furnish returns for six consecutive months, non-commencement of business, or not operating from the registered place of business. The remaining 32 were classified as non-genuine taxpayers. The audit observed that officers did not take cognisance of the supplies made by these taxpayers during the intervening period, nor did they recover the tax payable before cancellation of the registration. This resulted in non-recovery of tax amounting to Rs 96.85 crore along with applicable interest.Five taxpayers, who had filed ‘nil’ returns during the audit period, were found to have made taxable supplies, as evidenced by their EWBs. They were liable to pay tax of Rs 3.53 crore which was recoverable with interest. Nine taxpayers did not file returns for several months during the audit period despite generating EWBs during the period. These taxpayers transported goods worth Rs 4.9 crore with a tax liability of Rs 72 lakh.Review of 18 EWBs generated by 18 taxpayers from outside Maharashtra for supplies made to the consignees in Maharashtra having same PAN numbers, showed that in seven cases, goods worth Rs 10.59 crore with a tax liability of Rs 1.56 crore were not received in Maharashtra.GST: Rs 154.6cr lost in 20 audit deficiency cases The financial audit on GST payments from 2018 to 2021 found audit deficiencies in 20 cases with a revenue implication of Rs 154.64 crore on account of non-payment of interest and misclassification of supply. This apart, mismatches in availing ITC, discharge of tax liability and turnover were noticed in 119 cases involving a mismatch of Rs 6,666 crore.
