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Risky exporters
Why is it in the news?
- The government has identified 5,106 “risky exporters” so far who have claimed GST refunds based on bogus invoices.
- Government would manually check their claims before issuing refunds.
Manual Scavenging in India
- The Central Board of Indirect Taxes and Customs (CBIC) had issued an instruction to its Customs and GST formations to verify the correct availment of input tax credit (ITC) by few exporters who are perceived as “risky” on the basis of pre-defined risk parameters.
- According to sources, such fraudulent claims of Integrated GST (IGST) refunds by exporters could exceed Rs 1,000 crore.
- Only 5,106 risky exporters have been identified so far as against about 1.42 lakh total exporters.
- Thus, the risky exporters are only 3.5% of the total exporters.
- However, even for the ‘risky’ exporters, the exports were allowed immediately.
- Only their refunds would be released pending the verification of the ITC within 30 days.
- CBIC assured genuine exporters that their refund claims would be processed in an automated environment and issued in a timely manner.
Source
The Hindu.