Gujarat’s pre-GST era revenue arrears double in five years, says CAG report

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Published: December 12, 2019 2:01:38 AM

The CAG has criticised the Gujarat government for the slow pace of recovery of pre-GST arrears from 2013-14 to 2017-18. According to the CAG, the recovery rate of the government was as slow as 4.68% in 2017-18. The highest recovery rate was just 17.38% in 2013-14 during the period.

Gujarat, pre GST era,  revenue, arrear, CAG The value of unrecovered arrears assumes significance in the backdrop of the Gujarat government’s annual debt of over Rs 2 lakh crore.

The Gujarat government’s unrecovered revenue arrears of the pre-GST era has more than doubled to Rs 40,221.74 crore from Rs 18,117.02 crore during the five years beginning 2013-14, according to the latest report of the Comptroller and Auditor General of India (CAG), which was tabled in the Gujarat Assembly on Wednesday.

The value of unrecovered arrears assumes significance in the backdrop of the Gujarat government’s annual debt of over Rs 2 lakh crore. The CAG has criticised the Gujarat government for the slow pace of recovery of pre-GST arrears from 2013-14 to 2017-18. According to the CAG, the recovery rate of the government was as slow as 4.68% in 2017-18. The highest recovery rate was just 17.38% in 2013-14 during the period. The amount pending for more than five years comes to Rs 12,436.26 crore, while the recovery amount for 2013-14 to 2017-18 stood at Rs 27,785.48 crore.

“The department attributed unrecoverable amount to closure of business, dealers not traceable and property not available,” the report states. The CAG has called for strict enforcement of statutory provisions and updated data upkeep.

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