It has been informed by the parliament that central authority has detected 634 cases of fraudulent GST refund claim by the exporters amounting ₹1,912 crores between July 2017 to January 2020. Out if ₹1,912 crores, ₹238.97 crores has been recovered by the Central GST authorities. In this case, 35 persons have been arrested by the CGST authorities.
This cases has been detected with the help of Data analytics which the department is using in order to control such fraud cases. The Government verify every refund case with data analytics before releasing it to the taxpayer. In addition to this, the government is applying stringent risk parameters based checks which is driven by data analytics and Artificial Intelligence (AI) tools. Plus, a standard operating procedure is in line to mitigate the risk of wrongful Integrated Goods and Services Tax (IGST) refund claims of exporters.
A tax officer not below the rank of Assistant Commissioner has been permitted to block the input tax credit available, if he has reasons to believe that such credit is ineligible or has been availed fraudulently.