In the past few months, several case of fraudulently obtained input tax credit (ITC) refund of Integrated Goods & Service Tax (IGST) on exports of goods have been detected. On verification, it has been found that some are claimed on the basis of fake invoices, some are claimed on the basis of fake companies.
In order to avoid this in future, ministry has taken steps to apply stringent risk parameters based verification through rigorous data analytics and Artificial Intelligence tools. This will help department to go for further verification. The refund in such cases will be kept secret till the verification report is received from the field formations. Further, the export consignments of concerned exporters are subjected to 100% examination at the customs port.
It will be taken care that genuine exporters do not face any hardship. The exporters whose refunds are under verification is expected to be informed either by the jurisdictional CGST or by Customs as soon as possible. To expedite the verification, the exporters should fill the information in the format attached as Annexure ‘A’ to this Circular and submit the same to their jurisdictional CGST authorities. If required, the jurisdictional authority may seek further additional information for verification, subject to prescribed timeline.
Verification shall be completed by jurisdiction CGST office within 14 working days of furnishing of information by the exporter. If the verification is not completed within this period, the jurisdiction officer will bring it the notice of a nodal cell to be constituted in the jurisdictional Principal Chief Commissioner/Chief Commissioner Office.
After a period of 14 working days from the date of submission of details in the prescribed format, the exporter may keep the matter to the Jurisdictional Principal Chief Commissioner/Chief Commissioner of Central Tax by sending an email to the concerned Chief Commissioner. The Jurisdictional Principal Chief Commissioner/Chief Commissioner of Central Tax should take appropriate action to get the verification completed within next 7 working days.
In case, any refund remains pending for more than one month, the exporter may register his grievance at www.cbic.gov.in/issue by giving all relevant details like GSTIN, IEC, Shipping Bill number, Port of Export & CGST formation where the details in prescribed format had been submitted. All such grievances shall be examined by a Committee headed by Member GST, CBIC for resolution of the issue.
The circular in this respect can be accessed here :circular-cgst-131