CAG Report Flags Flaws in GST E-Way Bill System
A report by the Comptroller and Auditor General of India (CAG) has identified significant procedural and technical shortcomings in the functioning of the e-way bill system under the Goods and Services Tax (GST) regime.
Key Flaws Highlighted by the Audit
- Non-Blocking of Multiple E-Way Bills: The CAG found instances where the system failed to automatically block the generation of multiple e-way bills for a single invoice, leading to the risk of the same consignment being transported repeatedly, facilitating tax evasion.
- Inconsistencies in Validation: The report pointed out flaws in the system’s ability to effectively validate the accuracy of data entered. The system often failed to flag or prevent the generation of e-way bills based on:
- Invalid GSTINs (GST Identification Numbers).
- Incorrect HSN Codes (Harmonized System of Nomenclature).
- Pin code mismatches that indicated illogical transportation distances.
- Lack of Integration and Enforcement Gaps: The CAG noted weaknesses in the integration between the e-way bill portal and other GST modules. Furthermore, there were deficiencies in the proper follow-up and enforcement action taken by tax authorities on alerts generated by the system, allowing potentially fraudulent activities to slip through.
Significance
The report emphasizes that these flaws pose a substantial risk to revenue and undermine the effectiveness of the e-way bill system, which was introduced primarily to track the movement of goods and curb tax evasion.
Source :- The Hindu