Credit fraud

GST officers detect fraud of Rs 4,000 input tax credit in April-June

GST officers detected more than Rs 4,000 crore of input tax credit (ITC) fraud during the June 2021-2022 quarter, Parliament informed on Monday.

In a written response to a question from Lok Sabha, Minister of State for Finance Pankaj Chaudhary said 7,268 cases of ITC fraud involving Rs 31,233 crore were detected by central GST officials. in 2020-2021.

During the April-June period of the 2021-22 fiscal year, 818 such fraud cases were recorded, involving Rs 4,002 crore.

“The necessary measures, as mentioned in the GST law, are being taken to recover the amount of tax evaders linked to ITC fraud,” Chaudhary said.

In the current fiscal year through June, Rs 175.21 crore of ITC fraud was recovered and 19 show cause notices (SCNs) were issued.

In 2020-2021, 94 SCNs were issued and Rs 2,231.64 crore was collected.

In response to a separate question, Chaudhary said that the mechanism for requesting a refund of the goods and services tax (GST) by exporters is a streamlined process.

“There have been cases of exporters claiming GST refunds on the basis of fraudulent documents,” he said.

In April-June 2021, 13 such cases against exporters were recorded and the amount of ITC reimbursement fraud detected was Rs 313.55 crore.

In 2020-2021, ITC reimbursement fraud worth Rs 434.93 crore by exporters was detected, while in 2019-20 it stood at Rs 799.78 crore .

Chaudhary further stated that although the interface for taxpayers is digital and software, tax evaders commit frauds even on electronic platforms by distorting facts such as providing false credentials at the time of registration. ; by engaging in the creation of false invoices to benefit from an unjustified ITC.

“To prevent tax evasion, various validations have been integrated into the GSTIN / CBIC system to eliminate tax evaders,” he added.

In response to another question, the Minister said that under the Export of Goods from India (MEIS) program, Rs 30,525.20 crore and Rs 608.50 crore have been granted. as incentives to exporters for 2019-2020 and 2020-21, respectively.

When asked if the Directorate of Tax Intelligence issued notices to exporters, he said that DRI issued rationale notices to 17 exporters during the period 2018-19 to 2021-2022 (until June 30 2021) for import irregularities. against prior authorizations before exports.

Chaudhary further said the government has taken a number of steps to quickly process GST refund claims, including making the refund process fully automated, specified timeframes for processing claims, special refund campaigns for the priority elimination of pending requests.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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