CBIC Reports Customs Cooperation, GST Grievance Mechanism, and ITC Fraud Detection; Weekly newsletter from Chairman, CBIC dated 13/05/2025
A recent newsletter from the Central Board of Indirect Taxes & Customs (CBIC) highlighted several key developments. The CBIC signed a Memorandum of Understanding with the Islamic Republic of Iran Customs to enhance bilateral cooperation, paving the way for agreements on training, data exchange, a Green Customs Corridor, mutual recognition of Authorized Economic Operators, and electronic data exchange. In a move aimed at improving taxpayer facilitation, the CBIC introduced a mechanism via Instruction No. 04/2025-GST allowing applicants with a Central jurisdiction Application Reference Number (ARN) to escalate grievances regarding GST registration queries or rejections directly to the jurisdictional Principal Chief Commissioner. CGST Zones are urged to implement this quickly, publicizing a dedicated email ID and reporting status to the Board. The newsletter also reported on the detection of a significant fraudulent Input Tax Credit (ITC) racket amounting to Rs. 64.25 crore by CGST Faridabad Commissionerate. Utilizing data analytics tools, officers identified entities issuing invoices without goods, operated by an individual using forged documents and identities. The investigation uncovered manipulation involving numerous iPhone IMEI numbers, forged utility bills, and misused vehicle numbers, leading to two arrests.
Weekly newsletter from Chairman, CBIC dated 13/05/2025
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
DO No. 19/News Letter/CH(IC)/2025 Dated: 13th May, 2025
Dear Colleague,
Last week, CBIC signed the Memorandum of Understanding (MoU) on the Implementation of the Bilateral Agreement on Customs Cooperation with the Islamic Republic of Iran Customs. This MoU will facilitate the further signing of instruments for cooperation in training, exchange of statistical information, establishment of a Green Customs Corridor, mutual recognition of Authorized Economic Operators (AEO), and electronic exchange of customs data on goods and vehicles crossing the countries borders.
As part of CBIC’s commitment to fostering a fair and facilitative tax environment, a trade-friendly measure has been introduced through Instruction No. 04/2025-GST, aimed at ensuring redressal of grievances arising during the GST registration process. The mechanism empowers applicants whose Application Reference Number (ARN) has been assigned to Central jurisdiction to escalate issues directly to the jurisdictional (Pr.) Chief Commissioner in respect of any query raised in contravention of the Instruction No. 03/2025 dated 17.04.2025, or grievance arising from grounds of rejection of application. All CGST Zones are urged to operationalize this mechanism at the earliest by publicizing a dedicated grievance email ID, ensuring timely redressal of complaints, and submitting regular status reports to the Board through DGGST. It is important to note that where queries raised by the officer are found to be proper, the applicants may be suitably advised. This initiative is a step forward in enhancing taxpayer trust and transparency.
Moving on, noticed an interesting case last week. CGST Faridabad Commissionerate unearthed a fraudulent Input Tax Credit (ITC) racket amounting to Rs. 64.25 crore by leveraging advanced data analytics tools such as GST Prime and ADVAIT. The officers detected that two entities were engaged in passing on ineligible ITC by issuing goods less invoices. The mastermind behind this had floated the firms using forged documents in the names of his grandmother and domestic help. The investigation revealed large-scale manipulation, including the use of over 8000 IMEI numbers of iPhones (obtained through fraudulent means) sold directly to consumers through online platforms like Amazon, Flipkart, etc., forged electricity bills for registration, and e-way bills having invalid or misused vehicle numbers—including public buses. These phones were shown in their purchase to pass on the fake credit. ADVAIT reports and field verification confirmed the complete absence of purchase trail in GSTR-2A of supplier firms in the chain. The surveillance efforts led to the arrest of two key accused. The efforts of CGST Faridabad Commissionerate in meticulously analysing complex data trails and executing a well-coordinated investigation is highly commendable!
Until next week!
Yours sincerely,
(Sanjay Kumar Agarwal)
All Officers and Staff of the Central Board of Indirect Taxes & Customs
