CAG report: Rs 986 crores GST payments mismatch, names Actor Nandamuri Kalyanram, Xiaomi, Mahindra and many more
Hyderabad: The CAG report on the revenue sector for 2021-22, tabled in the state legislative assembly, has found clear compliance deficiencies with a revenue implication of Rs 986 crore, including massive irregularities in GST payments, mismatch between returns, excess input tax credit (ITC), non-payment of interest and several other violations.
Following a varying trend of return filing and continued data inconsistencies, CAG conducted the Subject Specific Compliance Audit (SSCA) on GST payments and Returns Filing. During the inspections CAG found 407 high value data inconsistencies identified and subsequently the commercial taxes department responded to 283 cases. Of these, 109 cases constituting 38.51 per cent, turned out to be clear compliance deficiencies with a revenue implication of Rs 986.78 crore including mismatches and inconsistencies.
CAG in its report pointed out that a relatively higher rate of deficiencies was noticed in short /non-payment of interest, ITC mismatch, mismatch in RCM ITC availed, mismatch in claim of ISD credit, incorrect turnover declarations and short tax payments and others.
CAG said, “In 283 of 407 deviations accepted by the commercial taxes department of Telangana, audit observations or initiated examination in 97 cases with tax effect (including mismatch in ITC, tax liability and turnover) of Rs 729 crore.”
Some of the cases referred in CAG include, ITC mismatch in GST returns of Rs 17 crore was noticed in the case of Xiaomi Technology India Private Ltd in Punjagutta division. This was communicated to the department in March 2022. In response, the department said that a notice had been issued to the taxpayer.
Actor Nandamuri Kalyanram, brother of ‘RRR’ fame Jr NTR, was named in the CAG report for non-payment of interest for delayed filing of returns. Comptroller and Auditor General in the report on Revenue sector audit stated “Kalyanram Nandamuri under Jubilee Hills-1 circle had filed the returns of July 2017 to October 2017 and February 2018 to March 2018 belatedly in December 2017, April 2018 and July 2018 and paid the tax dues in these returns by debiting the Electronic Cash Ledger. However, interest amounting to Rs 11.53 lakh was not paid. On this being pointed out, the Department replied (April 2023) that the taxpayer is in process of reconciling the interest calculation and information on the same would be provided.
In another case Also, ITC mismatch in the returns of Rs 11 crore was noticed in the case of Mahindra and Mahindra Ltd in Begumpet division. ITC mismatch for Rs 9 crore was noticed in the case of Biocon Limited. A notice was served on Kalpan Kumar Cheeti in Marredpally circle, as tax liability on inwards supplies under reverse change mechanism (RCM) was nil, while ITC availed was Rs 4.6 crore, which resulted in mismatch, the report said.
