New Delhi, Jan 6 (KNN) After unearthing firms that made fake export credit claims, the Central Board of Indirect Taxes and Customs (CBIC) has asked Director General of Foreign Trade (DGFT) to tighten up its system used for accrediting exporters.

Reportedly, after Investigations, it was revealed that nine star exporters in sectors such as agro processing, garments and electronics were not traceable at the addresses on record, while in two cases, the premises were found sealed and seized by banks as the exporters had been declared as NPAs, even as they availed IGST refunds.

Star exporters, which are given more freedom than others in terms of reduced customs inspections, may now be asked to produce certifications declaring no non-performing assets (NPA) from the banks as CBIC cracks down on fake invoicing and fraudulent tax crediting, being encashed through IGST and input tax credit refunds.

As per the media reports, 40 of 241 star exporters surveyed had declared their turnover between nil and Rs 1 crore in 2017-18 and 2018-19, when it should have been at least Rs 21.5 crore for three consecutive years.

Alarmed at the misuse of IGST refunds by the star status exporters, the CBIC has requested to DGFT to install a more robust accreditation process and take necessary action as per law.

Published On : 06-01-2020

Source : KNN India