Exporters' 634 fraudulent GST refund claims worth Rs 1,912 cr detected

Topics GST | GST refund

A total of 35 persons have been arrested by the CGST authorities.

As many as 634 cases of fraudulent GST refund claim by exporters amounting Rs 1,912 crore has been detected by the central tax authorities between July 2017 to January 2020, Parliament was informed on Tuesday.

In a written reply to a question in the Rajya Sabha, Minister of State for Finance Anurag Singh Thakur said of this Rs 238.97 crore has been recovered by the Central GST authorities from the entities which claimed the fraudulent refunds.

A total of 35 persons have been arrested by the CGST authorities, he added.

"The Government has taken measures to use data analytics to identify risky taxpayers and verify them before sanction of refunds," Thakur said.

In reply to a separate question, Thakur said to identify fraudulent claims the government has taken measures to apply stringent risk parameters-based checks driven by data analytics and Artificial Intelligence (AI) tools.

Also, a standard operating procedure has been prescribed for exporters to mitigate the risk of wrongful Integrated Goods and Services Tax (IGST) refund claims.

To curb cases of wrongful claims of input tax credit, a tax officer not below the rank of Assistant Commissioner has been permitted to block the credit available if he has reasons to believe that such credit is ineligible or has been availed fraudulently, he said.


Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel