The government has blocked fraudulent Goods and Services Tax (GST) refund claims worth Rs 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 government rates export houses on the basis of their performance.
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 that take input tax credit fraudulently and monetise it by paying Integrated Goods and Services tax (IGST) and taking refund on that.
“The verification exercise is aimed at preventing unscrupulous exporters from defrauding the exchequer and bringing a bad name to the larger exporting community,” he said. CBIC has, however, assured all genuine exporters that they would continue to get their refunds in a fully automated environment, he said.
The official said as on date, a total of 7,516 exporters are in the risky exporters list. “Out of them, IGST refund worth Rs 1,363 crore is suspended in respect of 2,830 risky exporters. Adverse reports have been received in respect of 2,197 risky exporters,” he said.
{{/usCountry}}The official said as on date, a total of 7,516 exporters are in the risky exporters list. “Out of them, IGST refund worth Rs 1,363 crore is suspended in respect of 2,830 risky exporters. Adverse reports have been received in respect of 2,197 risky exporters,” he said.
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