Exporters used fake invoices worth Rs 3,500 cr to claim IGST refund
In the biggest ever pan-India joint operation against fraudulent claim of IGST refunds, the Directorate General of GST Intelligence (DGGI) and the Directorate General of Revenue Intelligence (DRI) have busted a major racket of fake invoices worth Rs 3,500 crore involving exporters.
 
Using fake invoices, the exporters are estimated to have claimed input tax credit (ITC) of more than Rs 470 crore which was further utilised. The agencies have intercepted live export consignments of many exporters at the Vadodara Rail Container Terminal, Mundra port and Nhava Sheva port for examination in order to ascertain the mis-declarations.
 
The two agencies carried out search operations at 336 different locations across the country.
 
The operations covered entities in over a dozen states, including Gujarat, Maharashtra, Delhi, Haryana, Uttar Pradesh, West Bengal and Karnataka. The case involves a large number of exporters sending out goods on payment of integrated GST (IGST) almost entirely out of the ITC availed on the basis of fake supplies.
 
"The joint operation of the two premier intelligence agencies of Central Board of Indirect Taxes and Customs (CBIC) was a first of its kind in the history of CBIC, which involved about 1200 officers from both the agencies," a Finance Ministry statement said.
 
The search operations were carried out based on the data analytics and intelligence gathering by DGGI and DRI, two premier agencies specialising in economic offences.
 
The preliminary investigation has revealed that exporters were shipping goods out of India on payment of tax (IGST), being done almost entirely out of the ITC availed on the basis of ineligible or fake supplies. Further, such IGST payments were claimed as refund on export.
 
Based on the data provided by the Directorate General of Analytics and Risk Management (DGARM), analysis was conducted wherein certain 'red flag' indicator filters were applied to the Customs' export data in conjunction with the corresponding GST data of the exporters.
 
"It was also noticed that there was no or negligible payment of tax through cash by the exporters as well as their suppliers. In few cases, even the tax paid through ITC was more than the ITC availed by these firms. On the basis of this intelligence, massive searches were conducted on the premises of exporters and their suppliers," the statement said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    kpushkar

    2 days ago

    We will have 10 trillion $ economy aided by CA , MBA, and fake invoices ...supported by so called businessmen ...joke is on the taxpayer

    balakrishnan

    3 days ago

    Accuracy ? what accuracy you will get in fake deals? BJP fellows mostly business men only. govt is run by wealthy men only..today..

    balakrishnan

    3 days ago

    think report might be true, after all, this govt is indeed some fake kind of govrnance sm going on i suspect.

    balakrishnan

    3 days ago

    seem terrible in the very BJP states what it means?

    M Muralidharan

    3 days ago

    govt should stop all these refund business and tax all products at the lowest rate (current rate - refunds) for all products. It will curtail fraud, lot of paperwork and bureaucracy.

    REPLY

    gcmbinty

    In Reply to M Muralidharan 3 days ago

    Absolutely. There should be one tax rate of GST/CGST of 2% on every business transaction through a bill of cost, digitally, computer ends linked to the GST-CGST collection centre. And, these transactions should be just verified through a periodical statement /return. No other documentation should be there.

    gcmbinty

    4 days ago

    Mind it, all the exporters and their employees are well educated people and also the ones who cleared the consignments for exports. This is the quality of our academic education. of business management on thuggy, fake documents, bad standards, bad pricing, and thus is the aim of the government to reach many trillions economy. I am disappointed.

    Tax task force recommends new income tax slabs for individuals
    A government constituted Direct Tax Code task force, headed by CBDT member Akilesh Ranjan, is arguing for a new tax regime for individuals. It has proposed dramatic changes to the Income Tax Act, which dates back 58 years.
     
    People earning between Rs 5 lakh and Rs 10 lakh per year may have to pay 10 per cent income tax, if the recommendations of this high-level tax force are accepted.
     
    IANS has learnt that radical changes in personal income tax slabs have been proposed. These include lowering the personal income tax for those earning between Rs 10 to Rs 20 lakh per year to 20 per cent.
     
    Currently, personal income is taxed at 5 per cent for income between Rs 2.5 and Rs 5 lakh, at 20 per cent for income between Rs 5 lakh and Rs 10 lakh, and 30 per cent for an income of over Rs 10 lakh. 
     
    Sources close to developments have revealed that the task force has recommended five tax brackets of 5 per cent, 10 per cent, 20 per cent, 30 per cent and 35 per cent, against the prevailing structure of 5 per cent, 20 per cent and 30 per cent.
     
     
    Those earning an annual income up to Rs 5 lakh, however, will get a rebate on the taxes paid, as was announced in the interim budget of 2019 by interim Finance Minister Piyush Goyal. This effectively means that those with an income of up to Rs 5 lakh will be charged zero tax.
     
    The report was submitted to Finance Minister Nirmala Sitharaman on August 19, but it has not been made public yet. According to sources, the panel has recommended that income tax for those earning above Rs 20 lakh and till Rs 2 crore, continue to remain at the previous rate of 30 per cent.
     
    It has also proposed introducing a new top tax bracket of 35 per cent for the super-rich, that is those earning above Rs 2 crore in a year, and doing away with the surcharge. 
     
    The rationalisation in tax slabs has been proposed to boost consumption and revive the economy by putting more money in the pockets of the middle income group. 
     
    The panel has also recommended removal of dividend distribution tax and scrapping minimum alternate tax. 
     
    Further, it wants the government to avoid levying surcharges.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    RAMANI N .V.

    3 weeks ago

    At last,some tax relief

    kpushkar

    3 weeks ago

    Some sense after long time...it would boost sentiment a lot

    GST annual returns filing deadline extended by 3 months
    The Central government on Monday extended the last date of filing the annual GST returns by three months, from August 31 to November 30.
     
    "It is hereby informed that the last date for furnishing of 'Annual Return' in the 'FORM GSTR-9 or FORM GSTR-9A' and 'Reconciliation Statement' in the 'FORM GSTR-9C' for the Financial Year 2017-18 is extended from 31st August, 2019 to 30th November, 2019," the Central Board of Indirect Taxes & Customs (CBIC) said in a statement.
     
    It cited certain technical difficulties being faced by taxpayers to file the annual returns for the extension.
     
    "Businesses were awaiting this extension for a couple of days now," said Abhishek Jain, Tax Partner, EY India. 
     
    "Owing to some IT system concerns and ambiguities in the reporting, coupled with other statutory deadlines, this extension was much sought-after and should help provide quite a breather to the businesses."
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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