New Delhi:- According to a government official recent revelation around 1,300 exporters were found absent from their principal place of business who have claimed the G.S.T Credits worth Rs.1,875 Crores, while the government was investigating for 7,516 exporters who are suspected by the statutory agencies as “Risky Exporters“.
It is said by the officials that, The Central Board Of Indirect Taxes & Customs (CBIC) has received adverse reports for about 2,830 exporters and therefore Finance Ministry have suspended Integrated GST (IGST) refunds and drawback claims of Rs.1,363 Crores. It is also said that among these 2,830 exporters there are 10 Star Exporters who have altogether taken IGST refunds amounting Rs.28.9 Crores and 7 Star Exporters out of these 10 Star Exporters were not present at their principal place of business when the officials visited theirs places for physical verification.
These absentee exporters reports are coming at this point of time when the Government is planning to implement tax compliance after providing a period of relief to the businesses affected by Covid-19 Crisis as they were provided with extra time to file tax returns and late fees and interest payable waived-off on these returns and audit reports.
It is a common practice to claim refunds of taxes fraudulently to evade tax liabilities by the taxpayers, and due to technology used by the authorities for GST related matters they can identify these type of taxpayers as per their past compliance records.
The “Risky Exporters” are recognized based on risk indicators data of customs department, GST and Income Tax department and foreign trade transactions, these identified risky exporters information is provided for physical verification to the officials of concerned departments.
