Fraction of exporters may have misused GST refund facility: FIEO

New Delhi, Jan 7 (KNN) Unhappy with the recent reports of some exporters indulging in Goods and Services Tax (GST) fraud cases, the Federation of Indian Export Organisations (FIEO) has said all traders should not be looked from same prism for GST fraud cases as there could be a fraction who might have misused the facility.

He was reacting to a direction of the Central Board of Indirect Taxes and Customs (CBIC), which has asked the Directorate General of Foreign Trade to make the accreditation system for star exporters more robust to curb tax fraud.

''It is very unfortunate that exporters have been singled out for GST frauds. Like any other section of the society, observed Saraf, there could a fraction of exporters who might have misused the GST refund facility. It will be very unfair to subject the entire exporting community for serious checks and investigation based on alleged misuse by limited few,'' he asserted on Monday.

FIEO President further said that it is unfortunate that exporters have been singled out for GST frauds.

''Due diligence has been done by all the authorities issuing such documents. If an exporter is not found at his Registered address, then the possibility is that he would have changed his place of business and records may not have been updated,'' he added.

He offered his services to help the authorities to locate the exporter and helped them in the investigation.

Saraf added that such news also makes our international buyers jittery as they consider status holders much creditable since the scheme is in operation for over 50 years and helped in establishing the reputation of such exporters in India as well as abroad. The report wrongly paints the status holders, who contribute to over 60% of the country's exports.

However, FIEO president has written to the government requesting the authorities to discuss the issue across the table and explore solutions to minimise, if not avoid, the revenue leakage all together.

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