Govt blocked fake GST claims worth ₹1,875 cr: Official

NEW DELHI: The government has blocked fraudulent Goods and Services Tax (GST) refund claims worth ~1,875 crore, involving 1,377 exporters, after their addresses could not be traced, a finance ministry official said.

“This number of risky exporters, also, includes seven exporters accredited as star exporters,” the official said requesting anonymity.

The Central Board of Indirect Taxes and Customs (CBIC) has already instructed officials to verify the correct availment of input tax credit (ITC) by such risky exporters on the basis of pre-defined risk parameters, the official said.

According to the official, while CBIC is focusing on quick disbursal of pending refunds to exporters, it also uses data analytics to identify “risky” exporter entities.