Revenue Dept Lens On GST Refunds From 2017 As Data Analytics Unearths 931 Cases Of Fraud

With GST evasion on the rise, the Revenue Department has turned to data analytics and unearthed 931 cases of fraudulent refund claims.

It has now tasked the GST Data Analytics Wing with scrutinizing all past and current refund claims filed all over the country for an inverted duty structure. Refunds of over ₹28,000 crores are said to have been filed by over 27,000 taxpayers so far on account of the inverted duty structure in the current fiscal year.

These taxpayers, who have purchased goods from tax-evading non-filers, would face verification and scrutiny, sources added. This exercise is being monitored every week by Revenue Secretary Ajay Bhushan Pandey, official sources added.

ITC frauds

To curb Input Tax Credit (ITC) frauds, data analytics is to being used to re-look at all refunds since 2017, keeping an eye on the modus operandi of unscrupulous refund claimants or fly-by-night/shell business entities to get fake ITC.

GST formations have booked 6,641 cases involving 7,164 entities till November last year and recovered around ₹1,057 crores.