CAG flags weak GST oversight, risk of revenue leakage in J&K

Srinagar, Apr 4: The Comptroller and Auditor General (CAG) has flagged weaknesses in the Goods and Services Tax (GST) system in Jammu and Kashmir, highlighting poor scrutiny of returns and gaps in revenue monitoring.
The findings, part of recently tabled audit reports, raise concerns over potential revenue leakage and inefficiencies in tax administration.
According to the audit, authorities failed to adequately scrutinise GST returns, while instances of missing records and weak enforcement mechanisms were also observed.
The issue is significant as GST forms a key component of the Union Territory’s revenue system.
“Inadequate monitoring and weak enforcement increase the risk of revenue leakage,” the audit report noted.
Experts say strengthening digital tracking and enforcement mechanisms is critical to improving tax compliance and revenue collection.
The findings are likely to prompt a review of GST administration practices in the region. [KNT]