Export firms raided in joint operation by DGGI-DRI

The massive operation involved about 1,200 officers from both the agencies who investigated suspected GST fraud to the tune of Rs 920 crore. In all, 336 locations across the country, covering entities in Tamil Nadu, Karnataka, Telangana, Delhi, Haryana, Uttar Pradesh, Gujarat, Maharashtra, West Bengal, Madhya Pradesh, Punjab, Rajasthan, Himachal Pradesh, Uttarakhand and Chhattisgarh, were searched. On the basis of data analytics, an intelligence developed in close coordination by both the agencies revealed that some exporters were exporting goods out of India on payment of tax (IGST), being done almost entirely out of the Input Tax Credit (ITC) availed on the basis of ineligible or fake supplies, said an official press release.

“Further, such IGST payment was claimed as refund on export. Based on the data provided by the Directorate General of Analytics and Risk Management (DGARM), an analysis was conducted wherein certain ‘red flag’ indicator filters were applied to Customs’ export data in conjunction with the corresponding GST data of the exporters,” added the press release.