DGGI (Hqrs.) registers case against firms for fraudulently claiming IGST refunds, 2 held

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New Delhi : DGGI (Hqrs.) booked a case on march 6, 2020, against M/s Aastha Apparels Pvt Ltd & others. These companies have fraudulently claimed IGST refunds on export of goods to the tune of more than Rs 61 crore.

Two directors of aforesaid exporter companies were arrested on March 7, 2020, under Section 69(1) of CGST Act, 2017, for offences under provisions of Sections 132(1)(b) & 132(1)(c) of the CGST Act 2017. Role of suppliers and other persons associated with these exporters is under investigation, according to a PIB release.

It has been revealed that Input Tax Credit (ITC) has been fraudulently availed by M/s Aastha Apparels Pvt Ltd & others on the basis of invoices received from non-existent/non-functional firms/companies or from companies which have indulged in circular trading. The said firms/companies also did not have commensurate purchases backwards. It has been further revealed that the supplier companies to these exporter companies are controlled and managed by few persons only and they are also engaged in claiming of suspect IGST refunds. Thesec ompanies have created a complex web of circular trading among themselves without commensurate payments or actual supplies of goods to pass on ineligible ITC to the Exporters.