November 5, 2024

Bogus claims under IGST refunds recognised by the government

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New Delhi, Jun. 20(HS): More than 5000 exporters not fitting into predetermined parameters of risk of input tax credit of Central Board of Indirect Taxes and Customs(CBIC) have been recognised by government. These exporters have claimed Integrated GST refunds of Rs. 1000 crore by presenting bogus invoices. Their claims will be manually checked while processing of claims of genuine exporters in an automated and timely manner, as per the statement of CBIC.
However, their exports have not been hindered but their refund will be released after checking their input tax credit within 30 days so that defrauding exchequer can be avoided. Their past record will also be checked.
The regular exporters and their bills, have been also identified, that need minimum supervision. Risk Management Centre for Customs has introduced alert system which can lead to suspension of refunds under IGST. The irregularities related to eligibility of documents and variation between FOB value declared and taxable value as per GST return are required to be reported to chief commissioner within 30 days of export.
This report will be shared by commissioner to customs port to identify the mismatch and then after finding it proper, the IGST claims will be processed.
It is noteworthy that these risky exporters account for 3.5 percent of total exporters(1.42 Lakh).