Over 1300 Exporters Claimed Untraceable False GST ITC

The government officials have told that over 1,300 exporters have claimed false GST refunds Get to know about official GST refund process under GST regime as finalized by the GST Council. We have included terms and conditions of all aspects worth Rs. 1,875 Crores from different sources which are untraceable to their business. 7,516 other entities have also been identified by the government ‘risky’ after ascertaining the red flags raised by different statutory institutions.

1,377 exporters have been recognised, out of which, 7 are accredited as star exporter as they are vanishing from their place of business as the department is trying to reinforce the relaxations provided amid the coronavirus outbreak. The government had provided relaxations by extending the last date to file income tax returns Get all due dates of income tax return and payment of advance taxes for FY 2019-20 (AY 2020-21). We update the last date as per the IT department’s and notifications. read more (ITR) and audit reports. Additional relief of late fees and interest was also provided.

Negative reports of three other star exporters have also been received by the Central Board of Indirect Tax and Customs (CBIC). According to an anonymous official, this total of ten star exporters has claimed false GST credit of Rs. 28.9 crores in total.

GST refund has always been a sensitive issue for the officials as they try to access and refuse false claims, which sometimes result in withholding of genuine claims and affects the liquidity of honest assessees. Wrongful tax refund claims have been the most common form of tax evasion in the country. GST is a system in which tax is charged at each stage of value addition and hence it depends a lot upon technology. Dependence on technology has made it more for the authorities to track it back to the assessee and ensure that proper compliance has been followed.

The official further informed that the government has rejected the claims of 2,830 risky exporters claiming refunds and drawbacks worth Rs. 1,363 crores and suspicious reports have been received about a few thousand others. The assessees or exporters are marked as ‘risky’ after ascertaining the results of risk indicators related to customs, foreign trade transactions, GST, and income tax. Details of such assessees are sent to the officials for physical and financial verification.