CAG audit · Comptroller and Auditor General of India · 2019-07-30

CAG Report No. 11 of 2019 - Compliance Audit on Goods and Services Tax (year ended March 2018)

This was CAG's first audit report on GST, based on audit work in 2018-19. It welcomes GST as a major reform and offers its findings as suggestions for making it work fully. It covers how GST was implemented and the status of the returns mechanism, revenue and return-filing trends, an IT audit of GSTN's registration and payment modules and IGST settlement, and a compliance audit of transitional credits, registrations and refunds. Auditors did not have access to GST data, so the compliance conclusions rest on limited field audit, though they point to serious system-level gaps.

Read the official report →All GST reports

Key findings and recommendations

  • The simplified compliance regime planned for GST had not been fully rolled out.
  • The GSTN audit found business rules wrongly mapped and key validations missing in the registration module.
  • It found operational gaps in the payments module and deficiencies in IGST settlement reports.
  • Limited field audit of transitional credits, registrations and refunds still showed serious system-level deficiencies.

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