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CAG urges India's Finance Ministry to monitor high-risk taxpayers in the GST composition scheme due to under-declaration and non-compliance issues.
The CAG has urged India's Finance Ministry to regularly identify and monitor high-risk taxpayers in the GST composition scheme, based on an analysis of 8.66 lakh composition taxpayers between 2019-20 and 2021-22.
The CAG identified two key risk areas: under-declaration of the value of outward supply and non-compliance with eligibility conditions by composition levy scheme (CLS) taxpayers.
To prevent tax evasion, the CAG recommended developing a system to identify and exclude ineligible taxpayers.
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