Making GST payment without deducting the excise duty component from the prices of purchased medicines resulted in excess payment being made to Goa Medical College’s (GMC) supply contractor. The incorrect GST worked out to Rs 10.6 lakh, the Comptroller and Auditor General of India (CAG) said in its report for the year ending March 31, 2019.
The CAG report stated that audit checked the supplies made by three out of 17 vendors from April 2018 to February 2019 and found that the vendors supplied medicines against 277 invoices amounting to Rs 6.4 crore at prices that included excise duty component.
“As the excise duty (ED) component was embedded in the tendered rates, GST was also paid on the excise duty component,” the CAG report stated. “The amount of excise duty included in the tendered rate worked out to Rs 89.3 lakh, GST incorrectly paid on excise duty component worked out to Rs 10.6 lakh,” it noted.
The non-deduction of ED component included in prices after introduction of GST on purchase of medicines, as per procedure prescribed by government, resulted in excess payment to the supply contractors to the extent of Rs 99.9 lakh in purchases worth Rs 6.4 crore, the CAG noted.