CAG Audit guillotined? - Should Parliament necessarily go with GST Council?

CAG derives its powers for audit of the collection of taxes by the Central Govt, State Govts & union territories having legislative assembly, from Article 149 of the Constitution of India read with Section 16 of The CAG Duties, Powers & Conditions of Service Act, 1971, not from any provision in the Central Excise Act, 1944, or Customs Act, 1962, or Finance Act, 1994, or the VAT Acts of the State Govts. At present neither the tax laws of the Central govts nor of the State govts specifically provide for audit by the CAG. But still the CAG not only audits revenue receipts but also conducts systems review in various areas of the tax administration. Therefore, omitting Section 65 in the revised draft CGST/SGST Act, would not in any way, affect the powers of the CAG to conduct the audit the CGST/SGST/IGST collection. Even when the State GST officers collect CGST and IGST on behalf of the Central Govt., they would be answerable to the CAG.

neha bhambri 17/03/2017