New Delhi: In yet another anti evasion action, Directorate General of GST Intelligence (DGGI) has booked Aastha Apparels and other firms for fraudulently claiming IGST refunds on export of goods to the tune of over Rs 61 crore.
The companies have been found to have availed the refunds on the basis of invoices received from shell companies or firms engaged in circular trading.
During the investigation, it was revealed that supplier companies to these export firms were controlled and managed by few persons only and they were also engaged in claiming of suspect IGST refunds.
"These companies have created a complex web of circular trading among themselves without commensurate payments or actual supplies of goods to pass on ineligible ITC (input tax credit) to the exporters," DGGI said in a statement.
The anti GST evasion authority has arrested two directors of the apparel export firms under section 69(1) of CGST Act, 2017 for offences under provisions of sections 133(1)(b) and 132(1)(c) of the CGST Act.
"Role of suppliers and other persons associated with these exporters is under investigation," DGGI said.
The GST authorities have put heat on fraudsters in recent months to contain tax evasion and augment revenue.
Data analytics are being extensively used to nab firms engaging in fraudulently claiming refunds. The loopholes in the law and rules have also been gradually plugged to prevent tax evasion.