Dealing with GST fraud

Balance between ease of doing business and compliance is tricky

The Central Board of Indirect Taxes and Customs (CBIC) has reportedly reached out to the Directorate General of Foreign Trade (DGFT) to make the accreditation system for star exporters more robust. The CBIC’s concern, as expressed to the DGFT in a letter, is that exporters that enjoy a “star” status from the DGFT are allowed various concessions, including reduced paperwork and inspections. The CBIC feels that some of the star exporters are misusing this facility. In particular, investigations by the Directorate General of GST Intelligence and Directorate General of Revenue Intelligence over the past months have identified exporters who have