Getting risky exporters under lenses, CBIC analyses data to cross-check fraudulent availment of IGST refunds

Mumbai, January 06: Ahead in the drive to check fraudulent availment of IGST refunds, the Central Board of Indirect Taxes and Customs on Monday extensively used data analytics and matched data with income tax, GST and customs, further getting the risky exporters under lenses.  While the ongoing investigations have thrown up at least nine star export houses as ‘non-traceable’ at their premises declared on record, all these star export houses have availed IGST refunds, which is now being questioned by the tax officers.

 

 

According to the Finance Ministry, the CBIC has referred the matter to Directorate General of Foreign Trade seeking a more robust accreditation process and taking further necessary actions as per law. "There are instances where an exporter with over 50 crore rupees of exports of readymade garments has taken a refund of 3.90 crores while the entity’s total GST payment in cash was a mere Rs 1,650", the statement read.

 

"Since an exporter enjoying star status is allowed many facilities, including reduced customs inspections, it makes for a strong case for DGFT to continuously seek a compliance and verification report from other regulators or obligate the exporters to produce statutory records of compliance, including certifications from the banks of No NPAs," the CBIC said in a letter to the DGFT earlier this month. 

 

The present ongoing exercise by CGST field formations has revealed serious issues in compliance behaviour in some cases. "In two cases, the premises were also found sealed and seized by the banks as the exporters had been declared as Non Performing Assets", it informed further.