GST has come as a challenge for government auditor CAG as huge numbers are to be worked, Comptroller & Auditor General of India (CAG) Rajiv Mehrishi said Monday.
The new indirect tax regime, however, also offers an opportunity as the data is available on a single platform making it possible to do a 100 per cent audit, Mehrishi observed.
“GST is a challenge. For that this institution (CAG) has risen very very well. It is a challenge since huge numbers are to be worked. But interestingly, it has thrown us a very interesting challenge.
“So far, as expenditure and revenue were concerned it was quite simple for us when we audited a particular state for revenue and expenditure. But here we have a new element which is neither Centre neither state and yet owned by both,” Mehrishi said while speaking at the Platinum Jubilee celebration of the Institute of Chartered Accountants of India (ICAI).
However, the CAG has started to figure out the best method that it can adopt under the Goods and Services (GST) regime, he said.
There is an opportunity that all the data is available in a single platform and it may be possible for the CAG to do a 100 per cent audit.
This way the institution can move towards assurance when it comes to audit, he said, adding, that will be a good beginning as this will be a good opportunity to move towards assurance as far as GST is concerned.
Lauding implementation of GST as one of the most important economic reforms in 70 years, Mehrishi said it is not only tax friendly and compliance friendly but also consumer friendly as it eliminates multiple taxation.
Source : Economic Times