New Delhi : A recent analytics-driven probe into Goods and Services Tax (GST) refunds has led investigators to detect more than 1,200 untraceable exporters, saving the exchequer of over Rs 350 crore in refunds under payment.
The Department of Revenue believes that unscrupulous customs brokers may be connected with these frauds involving fictitious entities, which exist only in virtual space with identity thefts and fake documents.
Sources said the Central Board of Indirect Taxes and Customs (CBIC) has asked licensed customs brokers to independently verify Know Your Customer (KYC) credentials of all exporters.
In recent months, at least 50 customs brokers have been found to have dealt with fraud exporter entities which are now untraceable at their registered addresses. Such custom brokers are also under the lens.
Informed sources said investigators are finding new modus operandi to claim fake GST refunds. More than 800 entities have been detected in the past five months while exporting overvalued merchandise of Rs 1,500 crore to claim fake IGST refunds.
However, investigators are confident of battling the problem of fake invoicing through advanced data analytics.
With rich data available in GST returns and e-way bills, every criminal leaves behind a digital trail and cannot escape the law, they said.
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