Manpower Shortage Hinders Internal Audits in India's CBIC

The Comptroller and Auditor General (CAG) has highlighted a notable shortage of personnel within the Central Board of Indirect Taxes and Customs (CBIC), impacting the number of units audited. Despite some improvement in audit coverage, gaps persist, with a significant portion of positions remaining unfilled.

The Comptroller and Auditor General (CAG) has raised concerns about the ongoing shortage of staff in the Central Board of Indirect Taxes and Customs (CBIC) audit units, citing that this issue is leading to discrepancies between planned and actual audits.

According to the CAG's latest report on the Department of Revenue for the period ending March 2023, internal audits are crucial under the self-assessed tax regime to ensure taxpayer compliance. As of July 1, 2024, 38% of positions in the CBIC Audit Formations remain unoccupied.

This staffing deficit has resulted in only a slight increase in audited units from FY'22 to FY'23, with a marginal recovery rate improvement. The CAG suggests that the Ministry should enhance manpower in CBIC's audit divisions to close this gap effectively.

(With inputs from agencies.)