Tax authorities detect 634 cases of fraud GST refund claim by exporters worth Rs 1,912 crore
Tax authorities fraud GST refund claim

New Delhi: Central tax authorities have detected 634 cases of fraudulent goods and services tax (GST) refund claim by exporters amounting Rs 1,912 crore between July 2017 and January 2020, Anurag Thakur, minister of state for finance said in Rajya Sabha Tuesday.
Of the total amount, Rs 238.97 crore had been recovered by the Central GST authorities from the entities which claimed the fraudulent refunds, and 35 people have been arrested by the CGST authorities, he added.
Responding to a question on the ways that the government is rectifying the shortfall in GST cess collections of Rs 63,250 crore for FY 2019-20, Thakur said that the government had released over Rs 81,000 crore as compensation cess between April and September 2019.
“GST compensation cess collection has shown upward trend since October, 2019,” Thakur said in his reply in Rajya Sabha. In January 2020, Rs 8,637 crore was released to states, up from Rs 8331 in December 2019. In November 2019 Rs 7727 was released and in October Rs 7607 was released.
In a response to a separate question, Thakur said that the government has undertaken several measures and regulations to curb fraudulent GST claims, including stringent risk parameters-based checks driven by rigorous data analytics and Artificial Intelligence (AI) tools.
The minister added that a standard operating procedure had been prescribed for exporters to mitigate the risk of wrongful refund claims of Integrated Goods and Services Tax (IGST), while tax officers, not below the rank of Assistant Commissioner, had been empowered to block input tax credit available in the electronic credit ledger of a taxpayer if credit taken as ineligible or has been availed fraudulently.“Based on the valuable feedback and suggestions received from multiple stakeholders including state governments, the GST Council makes recommendations and necessary action is taken by the government,” Thakur added.
To another question, Thakur said that the central government had notified creation of State and Area Benches of GST Appellate Tribunal for various states and UTs that had given proposals.