Incomplete database of arrears of revenue in Kerala, says CAG audit
Arrears of ₹ 4,933.72 crore in the start of 2014-15 has elevated to ₹11,366.35 crore (130.38%) on the finish of 2018-19 in the State
In Kerala, database of arrears of revenue was “incomplete and not properly maintained” in six departments audited by the Comptroller and Auditor General of India (CAG), and arrears of ₹ 4,933.72 crore in the start of 2014-15 has elevated to ₹11,366.35 crore (130.38%) on the finish of 2018-19.
The fee of progress of arrears quantity was fluctuating between 13.50% and 22.12% whereas the restoration remained sluggish, with the speed of restoration fluctuating between 4.58% and 9.16% throughout this era. This has been revealed in the CAG Report on Revenue Sector for the yr ending March 2019 and positioned on the desk of the Kerala Legislative Assembly on Thursday.
Even although 5,06,801 instances (83.30%) involving ₹3,484.97 crore (30.66%) had been accessible for Revenue Recovery (RR), the CAG audit has discovered that no RR motion was requisitioned by the respective departments in these instances to grasp arrears.
The complete revenue receipts of the Kerala authorities for 2018-19 amounted to ₹92,854.48 crore towards ₹83,020.14 crore for the earlier yr. As a lot as 67% of this was raised by the State by way of tax revenue (₹50,644.11 crore) and non-tax revenue (₹11,783.24 crore). The remaining 33% was receipt from the Government of India as Kerala’s share of divisible Union taxes (₹19,038.17 crore) and grants in-aid (₹11,388.96 crore).
Arrears of revenue as on 31 March 2019 on some principal heads amounted to ₹20,146.39 crore, of which, ₹5,765.84 crore was excellent for greater than 5 years.
At the top of June 2019, 3,560 Inspection Reports (IRs) issued as much as December 2018 in respect of numerous departments containing 22,437 observations involving a price of ₹8,213.60 crore was excellent.
Delay in modification of disposed attraction instances resulted in blockage of ₹103.39 crore in 157 instances of State Goods and Service Tax (SGST) Department and ₹1.13 crore in 118 instances of Revenue and Disaster Management (R&DM) Department in the chosen districts.
In the Compliance Audit on Transition from Kerala Value Added Tax to Goods and Services Tax, it was discovered that 61 registered individuals in eight tax districts availed themselves of extra transitional credit score amounting to ₹46.41 crore over and above the Input Tax Credit.
In the six chosen tax districts, 46 individuals not having any supporting invoices on items held in inventory on the appointed day however registered below the present legislation as producer/service supplier claimed transitional credit score in respect of inventory held, ensuing in irregular declare of CGST credit score amounting to ₹13.08 crore.
Excess refund of ₹0.57 crore was observed by the CAG audit in respect of 22 individuals in six chosen tax districts on account of inaccurate software of components.
As many as 2,453 buildings in 28 taluk places of work weren’t assessed to constructing tax by the tahsildars involved, although the village officers had reported these instances in 2016-17 and 2017-18.
In 20 taluk places of work, 898 buildings assessed below property tax by native our bodies weren’t recognized by the village officers and reported to the tahsildars for evaluation below the Building Tax Act/Rules, which resulted in non-levy of constructing tax to the tune of ₹6.72 crore.
Irregular assessments by the assessing authorities on account of turnover escaping calculation, software of incorrect fee of tax, irregular exemption and irregular evaluation of CST resulted in quick levy of tax and curiosity amounting to ₹6.33 crore.
In 7,671 instances, 1% tax collected at supply had not been thought-about whereas computing the acquisition worth of automobiles. This resulted in a brief assortment of one-time tax levied on non-transport automobiles amounting to ₹3.56 crore.
Short, non-levy of primary land tax amounting to ₹2.37 crore was observed in 1,162 instances in 28 taluk places of work. In respect of automobiles reclassified as non-transport, non-levy of tax was observed in 434 instances with a cash worth of ₹0.60 crore and short-levy of tax was observed in 1,023 instances with a cash worth of ₹1.22 crore.
The CAG has additionally identified the irregular adjustment made by the division in respect of extra go away wage and pension contribution paid by a licensee resulted in the quick restoration of value of institution amounting to ₹22.74 lakh.