Underscoring a steady revenue performance while identifying areas for systemic strengthening, the Comptroller and Auditor General of India’s latest audit report on Chhattisgarh has highlighted the need to further enhance oversight and compliance within the Goods and Services Tax framework.

The Audit Report of the Comptroller and Auditor General of India on State Revenues for the financial year ended March 31, 2023, was presented in the Chhattisgarh Legislative Assembly under Article 151 of the Constitution of India, offering a detailed assessment of the State’s fiscal position and tax administration systems.

According to the report, the Government of Chhattisgarh recorded total receipts of ₹93,877.13 crore during 2022–23. The State’s own revenue contribution stood at ₹48,370.54 crore, accounting for 52 per cent of total receipts, including ₹33,122.30 crore in tax revenue and ₹15,248.24 crore in non-tax revenue. Receipts from the Government of India were ₹45,506.59 crore, reflecting a balanced revenue structure.

The report, while noting this strong revenue base, draws attention to pending arrears of ₹8,585.80 crore across key departments such as Mining, Excise, Transport, Electricity, Registration and Commercial Taxes. Of these, ₹4,371.29 crore have remained outstanding for over five years, indicating scope for improving recovery efficiency.

A significant component of the audit relates to the Performance Audit of the Electronic Way Bill system under the Goods and Services Tax regime. The audit observed that while the system has facilitated monitoring of goods movement, certain gaps in the common portal allowed generation of Electronic Way Bills by ineligible entities, including cancelled taxpayers and non-filers of returns. Instances of multiple Electronic Way Bills being generated for the same invoice were also noticed, pointing to areas where system controls can be further strengthened.

The audit identified 29 cases of non-compliance involving a potential revenue implication of ₹20.34 crore, including issues related to non-discharge of tax liabilities and irregular claims of Input Tax Credit. It also flagged cases where Electronic Way Bills were generated without actual movement of goods, resulting in irregular transfer of Input Tax Credit amounting to ₹2.94 crore.

On enforcement, the report indicates that while action has been taken in several cases, there is scope to enhance efficiency, particularly in timely adjustment of tax and penalties collected during enforcement drives, where delays ranging from 8 to 1,981 days were observed.

In its Subject Specific Compliance Audit on oversight of Goods and Services Tax payments and return filing, the audit identified 641 cases of high-value discrepancies. Of these, 184 cases, representing 28.71 per cent, were confirmed as compliance deficiencies involving ₹297.36 crore. The Department has recovered ₹2.46 crore so far, with further scope for strengthening follow-up action.

The report also highlights issues such as excess or ineligible availing of Input Tax Credit, non-payment of tax by suppliers despite credit being claimed, and non-filing of statutory returns including GSTR-3B. In some cases, non-production of key records limited the scope of audit, indicating the need for improved transparency and documentation practices.

Further scrutiny of selected taxpayers revealed 23 compliance deficiencies involving ₹79.18 crore, against which ₹41.87 crore has already been recovered. The discrepancies were primarily linked to excess Input Tax Credit claims, short payment of tax, and inadequate reversal of credits.

Overall, the Comptroller and Auditor General of India’s report highlights both the resilience of the State’s revenue framework and the opportunities for strengthening compliance, technological safeguards, and enforcement mechanisms within the Goods and Services Tax system to ensure sustained fiscal discipline and revenue protection.

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