![GST Analytics Wing to Identify Risky Suppliers](https://blog.saginfotech.com/wp-content/uploads/2020/05/gst-analytics-wing-identify-risky-suppliers.jpg)
The CBIC had early received some complaints from exporters that in some cases the Integrated Good and service tax (IGST) refunds are being held for over 6 months. In this matter, the Central Board of Indirect Taxes and Customs (CBIC) recently directed the GST risk management wing to identify risky suppliers to exporters and submit the analysis report with Jurisdictional Field Officers.
Last year, the CBIC investigated and discovered a number of cases of firms receiving fake refunds on the export of goods through the Integrated Goods and Services Tax refunds
The CBIC had issued a Standard Operating Procedure (SOP) in the month of January this year, which need to be followed by such exporters, and now CBIC instructed the GST and Customs Zonal principal chief commissioners to send the pending verifications reports by June 5, 2020, to the DGARM.
The CBIC said that “The zonal Principal Chief Commissioners/chief commissioners of CGST and CX zones are advised to put a process in place to ensure that in future all such verifications are completed and reports sent to DGARM within maximum 3 weeks of receipt of the request of verification from DGARM,”.
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The CBIC is also doing some amendment in the Standard Operating Procedure (SOP) released in January and while doing that it states that to reduce the time taken to issue the No Objection Certificate the Directorate General of Analytics and Risk Management (DGARM) will “conduct supply chain analysis without waiting for verification report from the field and share risky first and second level major suppliers with the jurisdictional CGST (Central GST) formations at the same time when the risky exporter details are shared with the CGST formations”.
Now DGRM will get such verification reports directly by the GST and customs Commissionerates and now DGRM will decide whether No Objection Certificate (NOC) will be granted or not as per the received verification reports of exporters and their suppliers.
Central Board of Indirect Taxes
Rajat Mohan, Senior Partner, AMRG & Associates in this matter said that “the exporters have a vested right of tax refunds unless they are proven guilty. He further added that “With an internal memo from the GST policy wing looping in the senior-most tax officers in a state is expected to ease the plight of exporters,”.