The Comptroller and Auditor General (CAG) of India has found serious mistakes in how the Department of Posts (DoP) is working. These problems have led to a big loss of government money and also show that some rules were not followed. Let’s break it down simply so everyone can understand.
1. ₹13.57 Crore GST Not Collected by Post Offices
After July 2022, the government changed the rules and told the Post Department to collect GST (Goods and Services Tax) on many of their services like speed post. But the department delayed giving this information to their own offices. Because of this, post offices did not collect GST from other government departments for seven months.
This mistake led to a loss of ₹13.57 crore between July 2022 and September 2023.
Even after getting the correct instructions in February 2023, some postal units still took months to start following them. The CAG has asked the department to make sure future instructions are sent and followed quickly so this kind of mistake doesn’t happen again.
2. PLI/RPLI Payouts – Tax Not Deducted (₹3.65 Crore Loss)
In Kerala and other states, the Department of Posts gives insurance through PLI and RPLI. As per law, if someone gets more than ₹1 lakh from a matured policy (after September 2019), the department should deduct 5% income tax (TDS).
But CAG found that this was not done in 13,404 cases, and ₹3.65 crore of tax was not collected.
Even after the law changed, the software used by India Post (McCamish) was not updated. Now the department says they will deduct TDS manually and later fix the software. This mistake shows how a delay in updating systems can lead to big problems.
3. Promotions Given Without Completing Probation – Not Allowed
As per DoPT rules, government employees must complete their probation (trial period) before getting promoted. But CAG found that in some postal circles, staff were promoted without even finishing their probation.
In six circles, 40 Lower Division Clerks (LDCs) and 3 Multi-Tasking Staff (MTS) were allowed to appear in promotion exams even before completing their minimum service. This goes against rules and led to a financial burden of around ₹98.80 lakh.
The department replied that the rules did not clearly say how much service was required before appearing in exams. But now they are updating the Recruitment Rules to fix this issue.
The CAG has clearly said that the Department of Posts must fix these problems fast. Mistakes in tax collection, software updates, and rule-following are costing the government a lot of money. Also, they are not fair to honest employees.
The Department has promised to take action. But let’s wait and see how fast these changes really happen.