Audit Reports

Compliance Performance

Report No. 1 of 2021 - Revenue Sector Audit Report, Government of Chhattisgarh

Date on which Report Tabled:
Fri 30 Jul, 2021
Date of sending the report to Government
Wed 17 Mar, 2021
Government Type
Sector Taxes and Duties


The Report contains six compliance audit paragraphs and a Performance Audit of “Assessment, levy and collection of Stamp Duty and Registration Fees” amounting to ₹ 88.57 crore divided into six chapters.

The total receipts of the Government of Chhattisgarh in 2018-19 was ₹ 65,094.93 crore. The State’s revenue from tax receipts was ₹ 21,427.26 crore, non-tax receipts was ₹ 7,703.02crore, State’s share of divisible Union taxes was ₹ 23,458.69crore and Grants-in-aid from Government of India was ₹ 12,505.96crore. The State’s share of revenue receipts from own sources was 45per cent.

Receipts under Sales Tax have not matched the expectations projected by the State Government in its budget during 2014-18, but exceeded budgetary estimates during 2018-19. Receipts under State Goods and Services Tax have also exceeded budgetary estimates during 2017-19 and constituted the single largest source of revenue for the State during 2018-19. State Excise revenue exceeded budgetary estimates during 2017-19 while Stamp and Registration Fees, and Land Revenue have not matched the expectations projected during 2014-19.

Performance Audit of ‘Assessment, levy and collection of Stamp Duty and Registration Fees’ revealed the systemic deficiencies such as the Department did not make persuasive attempts to realise the Stamp Duty on sale and purchase of securities through Stock/Commodity Exchanges,short levy of Stamp Duty and Registration Fees due to misclassification of instruments, non-adherence to provisions of market value guidelines, and overlooking of the facts in the documents.

The Report also features our findings on application of lower rate of Value Added Taxwhich resulted in short levy of tax,allowance of exemption/concessional rate of tax against interstate sales, stock transfer, transit and export sales which resulted in non/short levy of tax in Commercial Tax Department. Audit noticed non realisation of Motor vehicle tax from the owners of vehicles in Transport Department. In Electricity (Energy) Department, non levy interest on delayed payment of electricity duty resulted in non-realisation of interestwas noticed.In Forest Department, avoidable expenditure on Assisted Natural Regeneration works under Green India Mission due to non-compliance with Departmental instructions and irregular expenditureon Rehabilitation of Degraded Forest (RDF) without plantation work in blank area of Plantation Working Circle in violation of the provisions of Working Plan Code were noticed.

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