Madhya Pradesh

Report No. 1 of the Year 2023 - CAG Compliance Audit Report (Revenue Departments) for the year ended 31 March 2021, Government of Madhya Pradesh

Date on which Report Tabled:
Mon 13 Mar, 2023
Date of sending the report to Government:
Fri 03 Feb, 2023
Government Type:
Sector Finance


Abridged overview (Compliance AR 2020-21)

This Report contains four Compliance Audits pertaining to two Departments of the State Government having aggregate audit findings of  Rs. 324.63 crore.

Compliance Audit on Commercial Tax Department regarding Transitional Credits under GST revealed 314 instances of non-compliance where the Commercial Tax Department had not issued any guidelines to verify Transitional credit claims preferred by the taxpayers. The audit of compliance to various provisions of the Act, revealed several instances of availing of inadmissible ITC on goods not covered under GST, non-payment of interest on reversal of wrongly availed Transitional Credit, excess amount credited to Electronic Credit Ledger, excess/irregular credit being carried forward in TRAN-1, inadmissible Transitional Credit claimed etc. owing to non-compliance of various provisions of the Act. These shortcomings, in aggregate, involved an overall revenue impact of Rs. 86.93 crore. Further, the audit of processing of Refund Claims under GST revealed instances of delays in issue of acknowledgement, issue of refund orders etc. Further, the audit of cases of refund of Input Tax Credit, refund of inverted duty structure, refund on capital goods etc. revealed the excess refund, irregular payment, inadmissible refunds etc. made to the dealers. These shortcomings, in aggregate, involved an overall revenue impact of Rs. 10.36 crore. Another audit of the Commercial Tax Department was conducted in respect of Assessment of cases under Section 20 of the MP VAT Act., 2002 with a view to assess whether taxable turnover was worked out properly and appropriate rates of tax have been applied, and whether the Input Tax Rebate was claimed and allowed properly. The various audit observations on omission and commissions in the assessments had an overall revenue impact of Rs. 21.13 crore. Compliance Audit on Mineral Resources Department revealed various procedural non-compliances as to non-convening of adequate Meeting of Boards and Executive Committee, non-maintenance of basic records like list of the mining affected area and affected people, register of the DMF amount payable and paid, irregular and inadequate audit of DMF accounts by the Chartered Accountant, non-preparation of Annual Report, non-display of district wise DMF data and its activities in the website etc. Further, the audit of the fund management of DMF revealed various irregularities pertaining to less contribution to DMF by the lessees, non-utilisation of DMF contribution from Sand, non-recovery on interest on delayed payments, funds lying idle in the DMF and non-recovery of unutilised amount from work executing agencies, etc. In addition to this, the Audit of various works executed from DMF revealed irregularities in the construction and repair works, delays in completion of work, non-recovery of advances in works which were not started, and irregularities in payments made to Contractors etc. These shortcomings, in aggregate, involved an overall impact of Rs. 206.21 crore.










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