The circular dated January 23, 2020, on the subject matter pertaining to avoid fraud and malpractices Government of India (GOI) stated in the notice that the exporters are ought to follow Standard Operating Procedure (SOP) so as to avoid fraudulent Input Tax Credit ( ITC ) grant to exporters based on fake invoices.
Yogesh Garg, Principal Commissioner, Goods and Services Tax (GST) Policy Wing under the Revenue Department of the Finance Ministry, GOI has issued the circular to the Principal Chief Commissioner/ Chief Commissioner/ Principal Commissioners stating that the exporters are supposed to follow the Standard Operating Procedure (SOP) to avoid the fraudulent transaction.
The circular was issued by CBIC based on the discovery of the fact that the ITC was claimed by the exporters on the basis of fake invoices and this benefit is taken by those exporters who are not even in existence under Integrated Goods and Service Tax (IGST) Act.
Further, on such discovery, the Government of India has undertaken the strict process of verification of exporters to tackle fraudulent ITC. Also, the verification will be done by the Union/ Central government under Central Goods and Service Tax (CGST) Act at CGST Office with the time frame of 14 days. The exporter is supposed to furnish all the necessary information in the performance. In the case of the lapse of 14 working days, the nodal cell will be formulated and the verification will be completed within the time frame of 7 days.
However, if no above-mentioned procedure is complied with by the appropriate authority then the exporter is supposed to submit his grievances pertaining to the non-verification at the official website namely www.cbic.gov.in/issue. The exporter has to furnish all the details including the Shipping Bill Number, GSTIN, IEC, etc.
The CBIC also said that all the grievances will be addressed by the Committee which will be headed by Member GST, CBIC so as to resolve all grievances.
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