CBIC Claims 1,377 Exporters Fraudulently Claimed IGST Refund of ₹1,875 crore

Central Board of Indirect Taxes & Customs (CBIC) has said that more than 1,300 exporters, including Star exporters, have fraudulently claimed Integrated Goods & Services Tax (IGST) refunds amounting to over ₹1,800 crore.

“A total of 1,377 exporters, who have fraudulently claimed IGST refund amounting to ₹1,875 crore, have been found untraceable at their principal place of business,” a source informed, while adding that this number of risky exporters also includes seven accredited as Star exporters. In addition, adverse reports have also been received on three Star exporters. These star exporters have claimed IGST refund amounting to ₹28.9 crore deceitfully.

According to sources, there are 7,516 exporters in the list of risky assessee. Of these, IGST refund/ drawback worth ₹1,363 crore has been suspended in respect of 2,830 risky exporters. Adverse reports have been received in respect of 2,197 risky exporters.

Sources also informed that the field formations of CBIC have detected offence cases amounting to ₹115 crore against identified risky exporters. Also, out of the 234 suppliers’ verification received so far, 82 suppliers do not exist at their principal place of business.

It may be noted that exporters are identified as “risky” on the basis of specific risk indicators based on Customs, GST, Income Tax and Directorate General of Foreign Trade (DGFT) data. The details of the identified risky exporters are shared with the CGST formations for physical and financial verification in terms of a Standard Operating Procedure (SOP).

Sources said that in 695 cases, positive reports have been received from CGST formations. Of these, in 461cases, IGST refund/ drawback amounting to ₹273 crore has been suspended. The details of these risky suppliers have been shared with jurisdictional field formations for physical/ financial verification and to verify the ineligible Input Tax Credit (ITC) availed by them.