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NEW DELHI : Goods and Services Tax (GST) authorities have bust a network of fictitious exporters who were availing of and utilising fake GST input tax credit of 134 crore, Central Board of Indirect Taxes and Customs (CBIC) said in a statement.  

Officials carried out a detailed analysis and unearthed a ‘risky exporter’ for scrutiny. The entity was engaged in export of pan masala, chewing tobacco and fast moving consumer goods. On extensive analysis of the e-way bills or electronic permit for goods transportation generated by two suppliers owned by the exporter’s associate, it was found that the vehicles for which the e-way bills were generated for purported supply of goods were being used in distant states Gujrat, Maharashtra and Madhya Pradesh and had never entered Delhi during the period under scrutiny, CBIC said.  

The exporter allegedly committed offences which are cognizable and non-bailable, CBIC said. The person running the export entity has been remanded to judicial custody by the Metropolitan Magistrate, Patiala House Court in New Delhi, for 14 days till 26 October and further investigation is on, CBIC said. 

GST authorities have recently tightened rules and have increased their technology led oversight to curb tax evasion. This comes at a time Central and state tax authorities are not in a position to raise taxes for revenue mobilization. The option before them is to widen and deepen the tax net. Increasingly, various agencies of the central and state governments have been working together to detect mismatches in the declarations made by assessees, which help in identifying suspicious transactions. 

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