Apparel, drugs, and leather exporters under scanner for tax scheme misuse

Sources say refunds of 600 entities not being processed

Exporters are misusing the government’s duty drawback scheme by claiming it along with refunds of integrated goods and services tax (GST), according to GST authorities, who are doing an investigation into this.
 

Over 100 such exporters — mainly in apparel, drugs, and leather — have been “illegally” drawing benefits from two routes, according to two officials privy to the probe.
 

“We have detected that several exporters have been allegedly making integrated GST refund claims on exports while part of the amount is also being claimed through the duty drawback route, which is illegal,” one of the officials said.
 

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