Team Goemkarponn
PANAJI: A Specific Compliance Audit (SSCA) Phase II on the oversight of GST payments and return filing has highlighted a major revenue risk, with mismatches and deviations amounting to ₹157.99 crore emerging as the key concern in the functioning of the State Taxes Department under the GST regime. The audit, largely based on data analysis, examined the effectiveness of control and oversight mechanisms such as scrutiny of returns, internal audit and compliance functions of wards. The scrutiny of GST returns and verification of taxpayer records covered the period from April 2018 to March 2021, while audit of selected wards pertained to April 2020 to March 2021, and was limited to State-administered taxpayers.
The audit observed several systemic instances of non-compliance with the provisions of the GST Act and Rules, including inaction against non-filers of GSTR-3B, delays in initiating scrutiny of returns, and failure to take follow-up action after cancellation of GST registrations. According to the audit, these lapses weakened the Department’s ability to ensure effective tax compliance and posed a serious risk to government revenue.
Under the Centralised Audit, test-check of returns data for 2018-19 to 2020-21 revealed deviations from statutory provisions in 109 cases, constituting 40.37 per cent of the 270 cases where replies were received, involving a total mismatch or deviation of ₹157.99 crore. Higher deviations were observed in high-risk areas such as tax not remitted due to non-filing of GSTR-3B, non or short payment of interest on delayed tax payments, and mismatches in tax payments as reflected in GSTR-9C. While 65 cases were accepted by audit due to valid explanations or corrective action by the Department, several replies were either unacceptable or not supported by evidence, with many audit observations still under examination.
Further, under Detailed Audit, test-check of records of 15 taxpayers for the period 2018-19 to 2020-21 revealed non-compliance involving deviations and mismatches amounting to ₹313.78 crore. These included non-filing of returns, short payment of tax and interest, incorrect availment of Input Tax Credit (ITC), and mismatches in discharge of tax liability. Major ITC mismatches were noticed between GSTR-2A and GSTR-3B, on import of goods, and in credits received from Input Service Distributors, along with discrepancies in declared tax liability.
The audit has recommended that the State Taxes Department ensure timely and proper action against non-filers, complete scrutiny of returns for 2020-21 in a time-bound manner, and closely monitor cancelled registrations to prevent accumulation of undischarged tax liabilities, in order to plug revenue leakages and strengthen GST compliance.
