Standard Operating Procedure in case of alerts in IGST Refund

Category: Business

Read this Article- https://vjmglobal.com/gst/gst-notification/ On 23rd January 2020, the Central Board of Indirect Taxes and Customs (CBIC) has published Circular No.131/1/2020-GST regarding the Standard Operating Procedure (SOP). This new procedure is for those exporters whose refund has been stuck due to alerts in IGST refund at custom. In June 2018, the CBIC has noticed instances of fraudulent ITC claims using ineligible documents and subsequent utilization of the credit for the purpose of payment of IGST exports. In addition, there were substantial variations between the FOB value declared in the Shipping Bill and the Taxable Value declared in the GST returns, with the intent of higher IGST payment using the utilisation of available credit. To curb these practices, the CBIC has issued Circular No. 16/2019-Customs dated 17 June 2019 introducing additional verification of issue of IGST refunds on export of goods with payment of taxes. CBIC has identified more than 5000 exporters under the same categories. They have set alerts on IGST Refund of those fraudulent claims. In most of the cases, the CBIC has detected that ineligible IGST refund claims were from the past few months. At the time of verification, they could not find, the existence of such exporters. Moreover, in most of these cases, the Input Tax Credit (ITC) claims were on the verge of fake invoices Read more on- https://vjmglobal.com/gst/gst-notification/