Of the Rs 8,585 crore pending recovery, major portions are from taxes and duties on electricity (Rs 4,545 crore) and taxes on sales and trade (Rs 3,837.89 crore). (Representational image)
The first Comptroller and Auditor General (CAG) report for 2026, tabled in the Chhattisgarh Vidhan Sabha last week, highlights that the state government has yet to recover Rs 8,585 crore for 2022–23 — including Rs 4,371.92 crore pending for over five years from Mining, Excise, Transport, Electricity, and Registration and Taxes on sales and trade.
As per the report, the total receipts of the Chhattisgarh government in 2022–23 stood at Rs 93,877.13 crore, of which Rs 48,370.54 crore (52%) was the state’s revenue, while the remaining Rs 45,506.59 crore came from the Centre.
Of the Rs 8,585 crore pending recovery, major portions are from taxes and duties on electricity (Rs 4,545 crore) and taxes on sales and trade (Rs 3,837.89 crore).
In both cases, the government informed the CAG that it has approached courts for recovery, with cases pending, including those under stay orders. An amount of Rs 418.56 crore remains pending due to non-availability of details of defaulters’ movable/immovable properties. Four departments — Forest, Public Works, Land Revenue and Water Resources — did not respond to the CAG.
The CAG also noted that as of April 2024, it had not received Action Taken Notes (ATNs) from departments on 75 recommendations made by the Public Accounts Committee (PAC) between 1998–99 and 2020–21. On Inspection Reports (IRs), it said: “10,401 paragraphs relating to 2,377 IRs issued between 1994–95 and 2022–23 remained outstanding at the end of April 2024.”
It further stated: “Out of 92 IRs issued during 2022–23, Audit did not receive even the first reply in respect of 435 paragraphs (46.74 per cent) from the Heads of Offices. Lack of action on IRs and audit paragraphs is fraught with the risk of perpetuating serious financial irregularities… It may also result in dilution of internal controls… and loss to the public exchequer.”
To address the issue, the CAG recommended: “State Government should ensure prompt and appropriate response to audit observations, and take action against those who have not furnished replies… within the prescribed time schedule.”
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The Indian Express reached out to the government for comments on the arrears but did not receive a response till the time of going to press.
The report also flagged issues with the electronic waybill (EWB) system under GST, used to track movement of goods. It found that ineligible entities — such as cancelled or inactive taxpayers — were able to generate bills, and in some cases fake or duplicate bills were created, leading to losses of crores.
It also highlighted lapses in GST payments and return filing. The report said: “Out of 641 cases, 184 cases (28.71 per cent) showed compliance deficiencies with a revenue implication of Rs 297.36 crore. The Department has recovered Rs 2.46 crore.”
A relatively higher rate of deficiencies was seen in excess availing of Input Tax Credit (ITC), availing ITC without supplier tax remittance, and undischarged tax liability. In such cases, a potential risk exposure of Rs 429.62 crore was identified due to mismatches in ITC claims and tax payments.
