Nagpur: In what the first of its kind, the investigation of the Central GST Department of GST has reported the alleged racet of cash refunds on RS213 Crore songs available for exports that never happened.
From here, RS123.97 Crore was taken by assessors, and disbursed RS90 Crore detained after this case was detected.
The Directorate General of GST Intelligence (DGGSTI) mainly reported cases of false input tax credit claims (ITC) made based on fictitious entries, to avoid cash payments of GST.
This for the first time there has been direct losses to the government by refunding fraudulent money.
The action was taken by the Nagpur DGGSTI unit.
Tons of Smoking Mixes, which mainly consist of tobacco, are shown as exported from the land container depot in Mihan.
Shipping is shown as Chief of Spain, Croatia, and other European countries.
Smoking mixture is filled in cigarettes and pipes.
Its exports on behalf of the three Shell companies suspected whose address was tracked into a small shop in Butibori.
Indirect taxes such as GST have an input tax credit system.
Credit accumulates on the basis of GST paid for input purchases, and can be adjusted to the tax liability on the final product.
Exporters are also permitted to get a cash refund on the remaining surplus credit, which cannot be adjusted to GST contributions on shipping again.
Refunds can be taken from time to time, said source.
However, in this case, the authorities believe that exports do not occur at all, even though fake delivery bills are displayed.
The store is shown as the address of the company owned by someone else.
The paper delivered for registration under GST is falted, said the source.
Tobacco attracts 28% GST and 290% Cess.
With more than 300% tax on tobacco, basic ingredients, even a very large refund.
For export every RS100, a refund is claimed to be more than RS300, the source said.
The three companies floated by the mastermind based elsewhere.
The companies were registered under the Hingna Division of the Central GST Department.
“It is also found that there is no incoming cargo record that is intended for exports.
If there are no items in, what can be exported,” said an official.
The press record by DGGSTI said there is a possibility that the racket may not be limited to the center.
It is possible that some shell companies may have formed.
In a brief exports shown in the name of the 3 Shell companies, their address was traced to the store in the Butibori DGGSTI Investigation said no export that occurred on all refund claims made based on credit surplus lying in tobacco for high refund claims