The Comptroller and Auditor General (CAG) has identified compliance gaps and delays in Goods and Services Tax (GST) refunds in Gujarat. According to the report, there have been significant delays in processing GST refunds which have led to revenue loss for the state exchequer. The CAG report highlighted the need for streamlining the refund process to ensure timely disbursal of refunds to taxpayers. The report also pointed out compliance gaps in terms of incorrect availment of input tax credit, which could potentially lead to revenue leakage. The findings underscore the importance of effective implementation of GST regulations to prevent tax evasion and ensure smooth functioning of the tax system. The report serves as a wake-up call for authorities to address these issues and strengthen the GST framework in Gujarat. It is essential for the state to take corrective measures to improve compliance and refund processes, ultimately benefiting both the government and taxpayers. The CAG’s observations will likely prompt the state authorities to take necessary actions to enhance GST compliance and efficiency in Gujarat.