Raids unearth 470cr fraudulent GST claims
New Delhi: In a massive nationwide search operation carried out on exporters and their suppliers covering 336 locations on Wednesday, nearly 1,200 officers from the Directorate of Revenue Intelligence and Directorate General of GST Intelligence unearthed fraudulent claims of over Rs 470 crore of Integrated Goods and Services Tax (IGST) and seized fake invoices of Rs 3,500 crore.
The searches showed that some exporters were exporting goods on payment of IGST, using credit for taxes paid on inputs. While there is no harm in using input tax credit (ITC) to settle tax liability, data analytics and intelligence gathered by the authorities showed that the credits were based on fake supplies. The IGST payments on exports are claimed back as refunds.
The agencies are investigating IGST refunds of around Rs 450 crore.
After detailed analysis of the data provided by the Directorate General of Analytics and Risk Management, it was also noticed that there was no or negligible payment of tax through cash by the exporters as well as their suppliers.