Hyderabad: In the biggest ever joint operation by the Directorate General of GST Intelligence and the Directorate of Revenue Intelligence against exporters fraudulently claiming refunds of IGST, pan-India searches were carried out at 336 locations in 15 states, including at nine locations in Hyderabad, Telangana on Wednesday.
Working with intelligence developed by intelligence agencies in Delhi using data analytics on imports, exports, and the IGST refunds claimed, the raids were carried out in Telangana, Uttar Pradesh, West Bengal, Delhi, Haryana, Gujarat, Maharashtra, Tamil Nadu, Karnataka, MP, Punjab, Rajasthan, Himachal Pradesh, Uttarakhand, and Chhattisgarh.
The intelligence resulted in finding that some commercial entities were exporting goods out of India on payment of tax (IGST) almost entirely out of the Input Tax Credit (ITC) availed on the basis of ineligible and fake supplies and further that the IGST payment was claimed as a refund on export. The data was developed by the Directorate General of Analytics and Risk Management.
The estimates are that Input Tax Credit of more than Rs 470 crore, on invoices of exports worth Rs 3,500 crore, was bogus and fake, used by the exporters on payment of IGST and refunds were also claimed. “In Hyderabad, nine locations were searched, mostly in the old city area. The searches were carried out on entities involved in the trading of electronic goods, mostly mobile phones. However, no arrests have been made so far and further investigation is on,” said an official.