Ahmedabad: The CAG has flagged GST deviations involving Rs 2,606.6 crore, referring to “deviations from the provisions of the Act” identified in audit. The report also highlighted inconsistencies in returns, input tax credit (ITC), and tax payments.The report for the period ending March 2024 said deviations were found in 291 cases, constituting 39.70% of the 733 cases of inconsistencies or mismatches between GST returns, ITC claims, tax payments, and related financial records for which the department had provided replies. Of these, the department accepted or acted on 175 cases involving Rs 749.53 crore. However, replies in 116 cases worth Rs 1,858.8 crore were not accepted by audit, including 39 cases where no proper evidence was provided. Irregularities were also seen in cancellation of registrations during 2020-21. In 1,237 cases (24.8%), cancellation orders were issued with delays ranging from one day to 997 days, while in 4,470 cases (84.4%), registrations were cancelled with effect from a date prior to the date of application. The audit of GST returns between 2018-19 and 2020-21 also identified 738 deviations involving Rs 51.05 lakh crore across returns, ITC, and tax payments. “This includes one data entry error of Rs 50.7 lakh crore while preparing e-way bill for movement of goods,” the report states. The report noted that such “very high money values” indicate that “controls to input and validate data in the system are not designed optimally.“ITC-related discrepancies included mismatches of Rs 1,555.51 crore between GSTR-2A and GSTR-3B and Rs 559.12 crore between GSTR-2A and GSTR-9.
