CAG is GST Ready
IN his speech at the Valedictory Function of 28th Conference of Accountants General held in CAG Office on 21 October 2016, the C&AG of India said,
The importance of fiscal sustainability of the governments can hardly be over-emphasized. Our Department has since the 1960s given special emphasis to audit of government revenues to ensure that the government revenues are realized as due and in time. It is to the credit of the Department that, based on our audit observations and findings, substantial amounts of government revenues are recovered each year both at the Union and the state levels. The Department has been alert to the emerging new challenges in the area of revenue administration, including the GST and various other reform measures taken by Government of India to improve tax collection and combat tax avoidance.
The Department has taken note of the changing paradigm in revenue administration, including the challenges posed by shadow economy and black money, transfer pricing, accommodation bills etc. and the need to manage large volumes of digital information that will emerge from increasing automation of tax filing, assessment and recovery procedures. Notwithstanding the fact that the revenue audit has led to identification and recovery of thousands of crores of tax amounts every year, the Audit Department has faced challenges in accessing the data and information of tax- payers, which significantly limits the potential and effectiveness of audit.
This Conference has given in-depth consideration to all aspects of revenue audit including the availability of manpower and required skills. In the coming days the recommendations of the Conference will be examined with a view to effect changes and take measures that would enhance the effectiveness of revenue audit such that it contributes more effectively to the fiscal sustainability of the governments.