It also flagged irregularities worth ₹603 crore in the government’s export incentive scheme, exposing gaps in revenue recovery and automated controls. The audit found ₹472.69 crore of inadmissible and irregular benefits under the Rebate of State and Central Taxes and Levies scheme. Another ₹130.39 crore arose from systemic failures in issuing scheme scrips.
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The CAG also highlighted systematic lapses in the government’s flagship tax dispute scheme Vivaad se Vishwas, pointing to incorrect tax calculations, revenue loss and prolonged delays in settling cases. The tax department failed to withdraw interest paid to taxpayers under Section 244A in 55 cases involving ₹1,168.27 crore, resulting in revenue loss, stated the report submitted to Parliament.