DGGI busts racket of exporter firms defrauding exchequer with ITC claims

In a major action, the Directorate General of GST Intelligence (DGGI) has busted a racket of exporter companies involved in defrauding the exchequer through fraudulent claims of input tax credit (ITC) and cash refund of around Rs 61 crore. An intelligence was developed by the officers of DGGI that few exporter comp anies were engaged in fraudulent availing of ITC on the invoices of non-existing and fictitious firms or such firms which apparently do not have any purchases themselves. The ITC so availed was utilized to pay IGST on the export goods, which was thereafter claimed as cash refund. Thus, the government exchequer was put at double loss — on one hand ITC was obtained on goods where no tax was paid and on the other hand IGST paid from such fraudulently availed ITC was obtained as cash refund. The amount of IGST refund obtained is estimated to be approximately Rs 61 crore. (IANS)

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