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NEW DELHI : Central Goods and Services Tax (CGST) officials at Alwar in Rajasthan have detected a case of input tax credit (ITC) related fraud in excess of 5,500 crore on the basis of data analytics, according to an official update. 

Central Board of Indirect Taxes and Customs (CBIC) said in a communication to field officers posted on the tax authority’s website that the development was a validation of the power of data driven approach.

The entire credit has since been reversed, the communication signed off by CBIC chairperson Vivek Johri said.

It also said that CGST officials in Delhi detected a case involving availing and using inadmissible input tax credit of more than 53 crores without the receipt of services. The total recovery in this case so far is 15 crore. Also, GST officials in Delhi detected cases of inadmissible tax credit of over 102 crores, the communication said.

The Directorate of Revenue Intelligence (DRI) has detected a case of evasion of customs duty by way of willful mis-declaration in the description of certain items imported for use in the manufacture of mobile phones. This resulted in wrongful use of ineligible duty exemption benefits amounting to more than 2217 crores, it said. Investigations were concluded and a showcase notice has been issued. A sum of 60 crore has been recovered in the case, the communication said.

The tax authority has over the last several months stepped up its tech-enabled data mining to identify questionable transactions and prevent misuse of the tax credit system. This has also helped in checking tax evasion and boosting revenue collections. Central and state governments collected nearly 1.49 trillion in GST revenue receipts in July, the second highest monthly revenue collection in five years of the new indirect tax regime.

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