DGGI books case against some firms for fraudulently claiming IGST refunds worth Rs 61 cr

New Delhi [India], Mar 7 : The Directorate General of GST Intelligence (DGGI) on Friday booked a case against Aastha Apparels Pvt Ltd and other compes for fraudulently claiming Integrated GST (IGST) refunds on the export of goods to the tune of more than Rs 61 crore.

It has been revealed that Input Tax Credit (ITC) has been fraudulently availed by Aastha Apparels Pvt Ltd and others on the basis of invoices received from non-existent/nonfunctional firms/compes or from compes which have indulged in circular trading.

"The said firms/compes did not have commensurate purchases backwards. It has been further revealed that the supplier compes to these exporter compes are controlled and managed by few persons only and they are also engaged in claiming of suspect IGST refunds. These compes 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," a release by DGGI said.

"Two directors of aforesaid exporter compes have been arrested on March 7 under Section 69(1) of CGST Act, 2017 for offences under provisions of Sections 132(1)(b) and 132(1)(c) of the CGST Act 2017. Role of suppliers and other persons associated with these exporters is under investigation," the release added.

Further investigation in the matter is underway.

( With inputs from ANI )