CBIC – More than 1.12 Lakh Crores IGST Refund paid to Exporters

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New Delhi : The Central Board of Indirect Taxes and Customs ( CBIC ) on said that it has paid IGST refund worth over Rs 1.12 lakh crores to more than 83,500 exporters to date.

The CBIC also said that, “This shows that the government’s efforts to fast track refunds under GST especially to exporters are yielding results”.

In a series of Tweets, the CBIC also said that, Refunds of only Rs. 3,604 Crores are pending with Customs and out of about 185,000 exporters, a total of 6,421 exporters (about 3.4% only) including some ‘star exporters’ have been identified as risky and hence, red-flagged.

Even some of the ‘star exporters’ are not traceable.

While the focus is on quick disbursal of pending refunds to exporters, data analytics has been used to identify ‘risky’ exporter entities that take input tax credit fraudulently and monetize it by paying IGST and taking refund thereof or taking refund of the accumulated ITC.

These exporters are being subject to KYC and verification process before the grant of refund.

The verification so far has revealed that 1,241 exporters are not traceable at their given addresses, which include 8 ‘star exporters’.

In addition, adverse verification reports have been received in the case of 399 exporters, which also include 4 ‘star exporters’.

Since the advent of GST, 77% of India’s exports have been under Letter of Undertaking (LUT), which are unaffected by the verification exercise being done by the CBIC officials.

The CBIC also said that, Even in respect of the exporters identified as risky, the Government is taking all necessary steps to expedite the verification.

At the same time, the Government remains concerned about the misuse of the facility of ITC and refunds by few unscrupulous exporters.

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