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GST fraud | CBIC asks DGFT to tighten process after star exporter pays Rs 1,650 tax seeks Rs 3.9cr refund

In its drive to check fraudulent availment of IGST refunds, the CBIC has extensively used data analytics and matched data with income tax, GST and customs to identify risky exporters.

January 06, 2020 / 05:57 PM IST

The Central Board of Indirect Taxes and Customs (CBIC) has asked the Directorate General of Foreign Trade to make the accreditation system for star exporters more robust to curb tax fraud.

"Since an exporter enjoying 'star' status is allowed many facilities, including reduced customs inspections, it makes for a strong case for DGFT to continuously (or annually) seek a compliance and verification report from other regulators or obligate the exporters to produce statutory records of compliance, including certifications from the banks of No NPAs," the CBIC said in a letter to the DGFT earlier this month.

The move comes following investigations into the mis-availment of IGST refunds by certain exporters holding 'star' status.

In its drive to check fraudulent availment of IGST refunds, the CBIC has extensively used data analytics and matched data with income tax, GST and customs to identify risky exporters.