Govt recovered less than 9% service tax arrears in FY17: CAG

The revenue department recovered only around 9 per cent of service tax arrears in 2016-17 even as the number of cases detected increased from the previous fiscal, government auditor CAG said on Tuesday. 

The department had an opening balance of Rs 2,658.31 crore in arrears to be realised in 2016-17, but with an addition of Rs 6,176.31 crore during the fiscal the total went up to Rs 8,834.62 crore. 

However, it could realise only Rs 783.33 crore, a mere 8.87 per cent of the total recoverable, said the Comptroller and Auditor General (CAG) report, ‘Indirect Taxes - Service Tax’, tabled in Parliament on Tuesday. 

The department disposed of demands worth Rs 4,285.29 crore last fiscal, ending the year with a closing balance of Rs 3,766 crore as arrears that could be recovered.