CAG Haryana Revenue Audit Finds ₹998.85 Crore Issues in 7,144 Test-Checked Cases; Works-Contract GST in Focus

The Comptroller and Auditor General of India has tabled a separate Haryana revenue-compliance report that identifies under-assessment, short levy and other revenue issues across tax, stamp-duty, excise and transport records, while also examining works-contract and construction services under GST. Government of Haryana Report No. 5 of 2026 was tabled on September 1, 2026.

The official CAG overview says the report contains 21 audit paragraphs covering non-levy or short levy of taxes and interest, stamp duty, motor vehicle tax and related revenue matters, together with a Subject Specific Compliance Audit on works-contract and construction services under GST carrying stated revenue implications of ₹509.22 crore.

State revenue receipts crossed ₹1 lakh crore in 2023-24

CAG records Haryana's total revenue receipts for 2023-24 at ₹1,01,314.84 crore, compared with ₹89,194.69 crore in 2022-23. Against that backdrop, the audit tested records from 143 units relating to Sales Tax and Value Added Tax, stamp duty and registration fees, excise and transport.

The test check identified under-assessment, short levy of tax or loss of revenue aggregating to ₹998.85 crore across 7,144 cases. These are audit findings from the units and records reviewed; they should not be read as a final adjudicated tax liability for every case.

Works-contract and construction GST formed a major part of the audit focus

The report includes a dedicated Subject Specific Compliance Audit on works-contract and construction services under GST. CAG's overview separately states that cases relating to VAT or sales-tax assessments, evasion of tax and the works-contract or construction-services SSCA involved ₹415.68 crore.

For GST practitioners, works contracts remain a high-control area because the tax position can depend on the nature of the supply, documentation, valuation, time of supply, place of supply, input tax credit restrictions and reconciliation of contractual billing with return data. A public-sector revenue audit focused on this area therefore provides a useful prompt for private-sector project and construction reviews as well.

Stamp duty and transport collections were also flagged

CAG reports cases of non-levy or short levy of stamp duty and registration fee amounting to ₹85.37 crore. The overview also highlights significant cases involving non-recovery or short recovery of motor vehicle tax from goods-carriage vehicles and maxi or motor cab owners, together with non-remittance or short remittance of revenue receipts into the Government Treasury, amounting to ₹8.17 crore.

The spread of observations across GST, legacy sales taxes, stamp duty, excise and transport is important for finance professionals because it shows that revenue assurance is not a single-tax exercise. Property transactions, vehicle operations, project contracts and treasury remittances can create separate statutory exposures that may sit with different teams.

What finance and tax teams can use as a control checklist

- Works-contract reconciliations: map contracts, invoices, advances, tax positions and return disclosures to the applicable GST treatment and retain the supporting reasoning.

- Legacy-tax closure: old VAT or sales-tax periods can continue to generate audit or assessment exposure even after GST implementation.

- Stamp-duty review: high-value agreements and registrations should be checked for correct classification, value and applicable duty before execution.

- Revenue collection controls: amounts collected on behalf of Government should be reconciled to treasury remittances, with aged exceptions escalated.

- Audit evidence: where a tax or fee position depends on exemptions, valuation or contractual terms, the evidence should be retrievable without relying on institutional memory.

How to read the headline numbers

The CAG figures are useful for identifying scale and risk, but they represent audit observations within the scope and sample described by the report. They do not automatically mean that every amount will become recoverable revenue. Departments and affected parties may respond, reconcile records, contest interpretations or take corrective action through the applicable legal process.

Practical takeaway: the fresh Haryana report is most valuable to CAs as a risk map. The combination of works-contract GST, legacy tax assessments, stamp duty, transport levies and treasury remittances shows where fragmented compliance processes can create material leakage. Firms and finance teams with exposure to construction, property, fleet operations or government-facing collections should test those controls before an external audit or assessment does it for them.

Official source: View the official source document

Key takeaway

The new official report combines quantified tax findings with a dedicated works-contract and construction GST audit, making it useful for practitioners handling projects, property and multi-tax compliance.