Compliance Performance

Report no. 3 of 2019 - Revenue Sector, Government of Gujarat

Date on which Report Tabled:
Wed 11 Dec, 2019
Date of sending the report to Government:
Fri 29 Nov, 2019
Government Type:
Sector Taxes and Duties


This Report contains 22 paragraphs and one Performance Audit involving Rs 443.24 crore. Significant audit findings related to major state revenues are value added tax, stamp duty and registration fees, taxes on vehicles, etc.

The total revenue receipts of the Government of Gujarat in 2017-18 were Rs 1,23,291.27 crore as against Rs 1,09,841.81 crore during 2016-17. The revenue raised by the State from tax receipts during 2017-18 was Rs 71,549.41 crore and from non-tax receipts was Rs 15,073.97 crore.

In the Performance Audit on ‘Mechanism in the State for Collection of Arrears of Revenue’ audit noticed that the number of cases pending for recovery of the Government dues of four major Departments pertaining to Stamp Duty, Motor Vehicles Tax, Mining Receipts and Taxes & Duties on Electricity was 1,56,880. Audit checked 4,058 cases and found irregularities in 2,517 cases involving Rs 253.65 crore. There were short comings in maintenance of initial records/ registers, failure to follow up the recovery process under the respective Acts, utilisation of existing resources properly as well as inadequate action for recovery as arrears of land revenue and follow up action.

In Audit of ‘Transition from VAT to GST’, out of 5,15,948 dealers registered under GVAT Act as on 30 June 2017, 4,61,156 dealers were finally granted registration certificates. The remaining 54,792 dealers being 10.61 per cent of the existing dealers were not migrated to GST regime. In five ACST offices, audit of 195 cases involving transitional credit of Rs 133.68 crore revealed irregularities in 53 cases which resulted in excess transitional credit of Rs 27.90 crore.

In Audit of ‘Levy and Collection of Mining receipts from petroleum and natural gas’, audit noticed that the Department had not specified the items eligible for post well head expenditure/ cost and the method of calculation for such cost. In six cases inclusion of ‘notional cost of capital’ in post well had expenses without specific instructions resulted in short levy of royalty of Rs 16.19 crore.

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