About 931 cases of GST refund claims have been identified through data analytics technology by the Department of Revenue. The department has, therefore, instructed the GST data analytics team to scrutinize all pending and past refund claims all over the country. It has been discovered that refunds of over Rs. 28,000 crores have been filed by taxpayers on account of inverted duty structure this year. All purchases made from tax evaders since 2017 till date will have to undergo scrutiny using the data analytics technology, and tax payment is currently being reviewed and money by the Revenue Secretary in order to prevent cases of input tax credit (ITC).
According to the news source, 6,641 cases have been identified till last year December in major cities of India including Kolkata, Delhi, Jaipur, etc. And through the help of data analytics, Investigators in Delhi have unveiled about 500 cases including fake billers, intermediary dealers, and cashing out of fake ITC credits developed by fraudsters. Investigators found many cases including the one in Uttarakhand, another by the manufacturers of chappals and the fake credits of over Rs 600 crore created by fraudsters and have taken instant action to curb refund claims. The mastermind behind the fake credits was arrested last December.
A case of an exporter who had over Rs 50 crore worth of readymade garments and had taken a refund of Rs 3.90 crore while his total GST payment in cash was only Rs. 1,650 was also reported.