NEW DELHI: The government on Monday said that over 83,500 exporters have already been paid refund of Integrated Goods and Services Tax (IGST) of over Rs 1.12 lakh crore and refunds of only Rs 3,604 crores are pending with the Central Board of Indirect Taxes & Customs (CBIC).
“This shows that the government’s efforts to fast track refunds under GST especially to exporters are yielding results,” CBIC said in a statement.
The board said that out of about 1.85 lakh exporters, a total of 6,421 exporters (about 3.4% only) including some ‘star exporters’ have been identified as risky and hence, red flagged. Even some of the ‘star exporters’ are not traceable at the addresses given by them.
Risky exporters are those who are suspected to claim excessive input tax credit (ITC) based on fake invoices. Star exporters are certified by the government on the basis of export performance and extended certain benefits including customs clearance on self-certification basis and exemption from furnishing bank guarantee under certain schemes.
Exporters can claim IGST refunds on exports in two ways – on the basis of issuance of a bond/letter of undertaking (LUT) at the time of exports and claiming a refund of accumulated ITC, or by paying IGST in cash at the time of exports and claiming refunds thereafter.
CBIC said that the verifications so far have revealed that 1,241 exporters are not traceable at their given addresses, which include 8 ‘star exporters’.
In addition, adverse verification reports have been received in the case of 399 exporters, which also include 4 ‘star exporters’.
As per the government, since advent of GST, 77% of India’s exports have been under LUT, which are unaffected by the verification exercise being done by the CBIC officials.
“At the same time, the government remains concerned about the misuse of the facility of ITC credit and refunds by few unscrupulous exporters,” it said.
CBIC said that risky exporters are being subject to KYC and verification process before the grant of refund.
Source: Economic Times