Fraudulent IGST refunds: Exporters to face stern action, say reports

Exporters are identified as 'risky' on the basis of specific risk indicators based on customs, GST, income tax and data from the Directorate General of Foreign Trade

Finance ministry sources said on Sunday that stern action would be taken against the exporters who fraudulently claimed integrated goods and services tax (IGST) refunds totalling Rs 2,020 crore.

Sources in the Central Board of Indirect Tax and Customs (CBIC) said that after feeling the heat, some 'fake', 'risky' exporters were lobbying with some prominent trade associations to allege that genuine exporters were being harassed by being asked for over 1,500 documents each for verification purposes. However, this is not true.

CBIC verifies each exporter in a two-stage verification process with hardly three to four documents, in line with the