In the biggest ever joint operation by Directorate General of GST Intelligence, DGGI and Directorate General of Revenue Intelligence, DRI pan-India searches were carried out at 336 different locations across the country against exporters who were claiming a refund of IGST fraudulently.
The operation covered entities in 14 states and national capital Delhi and involved about 1200 officers from both the agencies.
On the basis of data analytics, an intelligence developed in close coordination by both agencies revealed that some exporters are exporting goods out of India on payment of IGST, being done almost entirely out of the Input Tax Credit (ITC) availed on the basis of ineligible or fake supplies.
Such IGST payment was claimed as a refund on export. It was also noticed that there was no or negligible payment of tax through cash by the exporters as well as their suppliers. On the basis of this intelligence, massive searches were conducted on the premises of exporters and their suppliers.
The day-long operation revealed that many of the entities spread across the length and breadth of the country were either non-existent or had given fictitious addresses.
The preliminary examination of the records or documents resumed during the course of the joint operation along with the statements recorded of various persons indicated that an Input Tax Credit of more than 470 crore rupees (Invoice value of approximately 3,500 Crore rupees) is bogus and fake which has been further utilized by the exporters for effecting exports on payment of IGST through ITC and claiming consequential cash refund of the same.
Besides, an IGST refund amount of around 450 crore rupees is under examination. Further, some live export consignments of these exporters have been intercepted at Vadodara Rail Container Terminal, Mundra.