New Delhi: With the help of data analytics and sharing of information available with different agencies, revenue officials have detected a fraud of Rs 1,875 crores involving over 1,300 exporters, ETV Bharat has learnt.
A probe by the Central Board of Indirect Taxes and Customs (CBIC) showed that 1,377 exporters have fraudulently claimed Rs 1,875 crores as the IGST refunds.
“A total of 1,377 exporters who have fraudulently claimed the IGST refund amounting to Rs. 1,875 crore have been found untraceable at their principal place of business, said sources in the ministry of finance.
These are not ordinary exporters, as some of them have been recognized as star exporters by the government, a coveted tag for any exporter.
“The number of risky exporters also includes 7 exporters accredited as star exporters,” a source in the ministry of finance told ETV Bharat.
“In addition to this, adverse reports have also been received on three other star exporters. These 10 star exporters have fraudulently claimed the IGST refund amounting to Rs 28.9 crores,” said a source while requesting not to be named.
According to people familiar with the matter, authorities have identified a total 7,516 exporters as risky exporters and included them in the official list of such exporters.
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In addition to detecting the fraud of Rs 1,875 crores, the government has also suspended the IGST refunds and drawbacks of 2,830 exporters who figure in the list of risky reporters.
“Out of these over 7,500 risky exporters, the IGST refund, drawback worth Rs 1,363 crores has been suspended in respect of 2,830 risky exporters,” said the source.
The source said that adverse reports in respect of 2,197 other risky exporters have also been received.
He, however, clarified, that some exporters may be common in all three categories, exporters who have been identified for fraud, other exporters whose IGST refunds, drawbacks have been suspended and the third category of risky reporters against whom authorities have received adverse reports.
According to officials, an exporter is identified as ‘risky’ on the basis of specific risk indicators derived from the data available with Customs department, GST, and Income Tax authorities and also on the basis of data available with the Director General of Foreign Trade (DGFT).
The details of risky exporters are then shared with the Central Goods and Service Tax (CGST) authorities for physical and financial verification as per the standard operating procedures formulated by the GST policy wing.
According to the sources, the field formations of CBIC have also detected offence cases amounting to Rs. 115 crore against identified risky exporters.
Investigation against risky exporters also revealed bogus suppliers
According to sources, when tax officials carried out the verification of 234 suppliers who were supplying goods to exporters identified as ‘risky exporters’ then more than one-third (82 suppliers), were found non-existing at their principal place of business.
Sources said that in 695 cases, reports have been received from CGST formations, which have done supply chain analysis and found their suppliers have availed ineligible ITC.
Out of these 695 cases, authorities have suspended IGST and drawback refund amounting to Rs 273 crore involving 461 cases.
“The details of these risky suppliers have been shared with jurisdictional field formations for their physical and financial verification and to verify the ineligible ITC availed by them,” said sources in the ministry.
(Article by Krishnanand Tripathi)
