PANAJI
The Goa region of the Department of Post (DoP) failed to recover over Rs 46 lakh of Goods and Services Tax (GST) on various services it provided to the Central and State governments from July 2022 to January 2023, revealed the Comptroller and Auditor General (CAG).
The CAG in its report on ‘Union Government Finance and Communication’ said that delay in issue of instructions by Postal Directorate to field offices and further delay in implementation of the instructions by field offices resulted in non-charging of GST on speed post articles amounting to Rs 13.57 crore during the period besides attracting penal provisions by GST authorities causing loss to the Government exchequer.
During the seven months, Goa region raised GST invoice of Rs 2,58,91,445 of which Rs 46.60 lakh remained non-recovered.
CAG pointed out the Union Finance Ministry through a notification in June 28, 2017, exempted all the services by the DoP by way of speed post, express parcel post, life insurance and agency services provided to the Central Government, State Government, Union territory from GST.
However, GST council in its 47th meeting in June 2022 recommended that all taxable services of DoP would be liable to GST with effect from July 18, 2022.
“The Ministry of Finance (MoF) intimated DoP (12 July, 2022) regarding amendment in applicability of GST on the services provided by them. However, DoP intimated the instructions to its field offices after a delay of seven months in February 2023 regarding rationalization of rates and withdrawal of exemptions in GST implementation,” CAG pointed out.
CAG observed that DoP circles did not charge GST on speed post articles from Government customers under Book Now Pay Later (BNPL) Scheme, resulting in non-billing and consequent non-recovery of GST amounting to Rs 13.57 crore (Annexure 3.1) for the period from July 2022 to September 2023 by 15 Postal Circles.
On this being pointed out by audit, DoP stated that recovery of GST relating to the period from July 2022 to February 2023 will be undertaken upon receipt of instructions from the Postal Directorate.
The Ministry, while accepting the audit observation, stated that instructions for recovery of the GST from Government Customer on speed Post (BNPL) services has been issued (August 2024) and as of now, Rs 28,755 has been recovered.
CAG recommended that the Department develop a mechanism wherein instructions on GST Rules and its amendments are issued to field units on real time basis and implemented without delay, thereby avoiding loss to the Government exchequer.
