📷 Image: Wikimedia Commons / Ministry of Finance of India
Business
CAG highlights ₹2,500 crore GST recovery shortfall in Odisha's tax net
✍️ Business Standard
🗓 30 Sep 2026, 07:46 AM
👁 9
The Comptroller and Auditor General has flagged a weak GST recovery in Odisha, noting a demand‑supply gap of about ₹2,500 crore.
The Comptroller and Auditor General (CAG) report released this week points to a significant shortfall in Goods and Services Tax (GST) recovery for the state of Odisha. According to the audit, the state's tax net shows a demand‑supply gap of roughly ₹2,500 crore, indicating that collections are far below projected targets.
The CAG highlighted that the weak recovery stems from delayed filings, mismatches in input‑tax credit claims, and inefficiencies in the state's monitoring mechanisms. These gaps not only affect Odisha's fiscal health but also raise concerns about the effectiveness of GST administration at the state level.
State officials have been asked to submit corrective action plans to the central finance ministry, aiming to tighten compliance, improve data reconciliation, and accelerate pending refunds. The audit underscores the need for stronger coordination between the state tax department and the central GST framework to close the identified gap.
The CAG highlighted that the weak recovery stems from delayed filings, mismatches in input‑tax credit claims, and inefficiencies in the state's monitoring mechanisms. These gaps not only affect Odisha's fiscal health but also raise concerns about the effectiveness of GST administration at the state level.
State officials have been asked to submit corrective action plans to the central finance ministry, aiming to tighten compliance, improve data reconciliation, and accelerate pending refunds. The audit underscores the need for stronger coordination between the state tax department and the central GST framework to close the identified gap.