The government has also identified 7,516 entities as risky exporters running through the red flags raised by different statutory agencies Of the 1,377 missing exporters, seven had been accredited as star exporters. At their main place of activity, more than 1,300 exporters who have wrongly demanded Goods and Services Tax (GST) refunds worth 1,875 crores were found untraceable, a government official said. The government has also identified 7,516 entities as risky exporters walking through the red flags raised by different statutory agencies, said the official.
The discovery of 1,377 exporters, seven of whom are certified as star exporters, disappearing from their place of business comes at a time when the tax authorities turn their attention back to compliance enforcement after providing relief to companies affected by the coronavirus crisis. In addition to relief on interest and late fee payable, the industry was given extra time to file tax returns and audit reports. And if anyone wants to verify GST detail of a company just visit here for GST search.
Three other star exporters have also received adverse reports from the Central Board of Indirect Taxes and Customs (CBIC) These 10-star exporters together, said the official, who spoke on condition of anonymity, claimed integrated IGST (IGST) refund of Ø28.9 crore deceitfully.
The repayment of tax credits has always been a thorny problem with officials seeking to ensure that false claims are not made, while companies complain that their profitability is impaired by delays in processing the refunds. Fraudulently claiming tax refunds has been a common practice in the sector of tax evasion. GST, which implements a scheme of tax levies at each point of the industry’s value-added and relies heavily on technology, has made it easier for authorities to assess taxpayers based on their track record of compliance.
In the case of 2,830 risky exporters, the official quoted above-said authorities have suspended IGST refund or drawback claim worth some 1,363 crores. In the case of many others, adverse reports had been received, the official said. Exporters are reimbursed for taxes on the raw materials and services used as they can not be part of their exports’ international price.
Exporters are identified as ‘risky’ based on specific risk indicators based on customs, GST, revenue tax, and foreign trade transaction data. Details of identified risky exporters are shared with physical and financial verification field officials, the official said.(end)
