Raids un­earth 470cr fraud­u­lent GST claims

The Times of India (New Delhi edition) - - Business By Bids - NEWS NET­WORK

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.

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