The Directorate General of GST Intelligence (DGGI) on Friday booked a case against Aastha Apparels Pvt Ltd and other companies 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/companies or from companies which have indulged in circular trading.
"The said firms/companies 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. These companies 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 companies 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.