In its audit of revenue receipts of the Gujarat government, the Comptroller and Auditor General of India (CAG) has revealed a under assessment/short levy/loss of revenue of about Rs 6,023.46 crore in 1,418 cases by various departments in 2008-09.
"Test check of the records of sales tax, land revenue, state excise, motor vehicles tax, stamp duty and registration fees, electricity duty, other tax receipts, forest receipts and other non-tax receipts conducted during the year 2008-09 revealed under assessment/short levy/loss of revenue amounting to Rs 6,023.46 crore in 1,418 cases. During the year, the departments accepted under assessment of Rs 15.97 crore in 358 cases and recovered Rs 5.45 crore in 233 cases pointed out in 2008-09 and earlier years," the CAG report stated.
In its review of transition of the Gujarat government from sales tax to value added tax (VAT), CAG reported, "By allowing dealers to collect and retain the output tax, the Gujarat government had deviated from the basic principle and allowed undue enrichment of Rs 6,376.58 crore to the exemption incentive holders at the cost of general public. Instead, the Government could have allowed the exemption holders to continue their sales without recovering the output tax and by allowing the purchasers to avail the ITC at notional basis which could have ensured that the VAT chain is not affected."
CAG also came down heavily on the non-realisation of revenue from detection of illegal mining by the state government. "Even in cases where the department had detected illegal mining, CGM could not recover the dues for long periods. As a result, 44 cases of illegal mining could not be detected timely and revenue of Rs 490.43 crore could not be realised," the report stated.
The report also stated that the total revenue receipts of the Gujarat government in 2008-09 were Rs 38,675.71 crore as against Rs 35,689.85 crore during 2007-08. Moreover, the revenue raised by the state from tax receipts during 2008-09 was Rs 23,557.03 crore and from non-tax receipt was Rs 5,099.32 crore.
"State's share of divisible Union taxes and grants-in-aid from the Government of India were Rs 5,725.86 crore and Rs 4,293.50 crore, respectively. Thus the revenue raised by the state government was 74 per cent of the total revenue receipts," the CAG report further stated.
Meanwhile, the 13-odd PSUs, closure of which was recommended by CAG, posted a turnover of Rs 70.36 crore and registered a deficit of Rs 331.75 crore for the year ended March 31, 2009, according to the report. The entities, which include Gujarat Sheep and Wool Development Corporation Ltd., Gujarat State Road Development Corporation, Gujarat State Rural Development Corporation Ltd., and Gujarat Growth Centres Development Corporation Ltd., among others, had a total paid up capital of Rs 51.64 crore, the report further stated.