Standard Operating Procedure (SOP) to be followed by exporters -reg.

Last updated: 24 January 2020

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The Central Board of Indirect Taxes and Customs (CBIC) has issued a new Standard Operating Procedure (SOP) for exporters. This is in response to the detection of fraudulent claims for Integrated Goods & Service Tax (IGST) refunds using ineligible Input Tax Credit (ITC) derived from fake invoices. The new SOP aims to prevent such fraudulent activities.

CBEC-20/16/07/2020-GST

Government of India

Ministry of Finance

Department of Revenue

Central Board of Indirect Taxes and Customs

GST Policy Wing

New Delhi, Dated the 23rd January, 2020

The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/

Commissioners (All)

Madam/Sir,

Subject: Standard Operating Procedure (SOP) to be followed by exporters– regarding

As you are aware, several cases of monetisation of credit fraudulently obtained or ineligible credit through refund of Integrated Goods & Service Tax (IGST) on exports of goods have been detected in past few months. On verification, several such exporters were found to be non-existent in a number of cases. In all these cases it has been found that the Input Tax Credit (ITC) was taken by the exporters on the basis of fake invoices and IGST on exports was paid using such ITC.

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FAQ :

The new SOP has been introduced to address and prevent fraudulent claims of IGST refunds, which have been obtained using ineligible Input Tax Credit (ITC) based on fake invoices.

Several cases have been detected where exporters have fraudulently claimed IGST refunds by monetising credit obtained through fake invoices and ineligible Input Tax Credit (ITC).

The fraudulent claims were based on Input Tax Credit (ITC) taken by exporters on the basis of fake invoices, which was then used to pay IGST on exports.

This notification was issued by the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance, Government of India.