The Central Board of Indirect Taxes & Customs (CBIC) celebrated India’s 78th Independence Day by hoisting the national flag across its formations and reaffirming its commitment to building a self-reliant India. Drawing inspiration from the Prime Minister’s address, CBIC emphasized its role in promoting efficiency, transparency, and integrity in public service. As part of its ongoing efforts to ensure compliance with GST laws, CBIC announced a second All-India drive targeting fake GST registrations and bogus invoices. This drive, running from August 16 to October 15, 2024, will involve coordinated efforts between Central and State tax authorities, utilizing the GSTN Back Office for information sharing and a structured feedback mechanism. Additionally, CBIC highlighted the success of NACIN Palasamudram in showcasing its advanced training facilities at Vigyan Bhawan. The Board also reported significant enforcement actions, including the detection of trade-based money laundering involving overvalued cosmetic imports by DRI Kolkata and a GST evasion case by DGGI Kozhikode, where a large international membership organization was found to have evaded Rs. 230.30 crore in taxes. The CBIC remains vigilant in its efforts to protect revenue and uphold the integrity of the tax system.
Weekly newsletter from Chairman, CBIC dated 19.08.2024
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
DO No. 34/News Letter/CH(IC)/2024 Dated: 19th August, 2024
Dear Colleague,
On the momentous occasion of India’s 78th Independence Day, all CBIC formations across the nation proudly celebrated by hoisting the national flag with great reverence and enthusiasm. As we reflect on the sacrifices made by our freedom fighters and the journey of our nation since 1947, we draw inspiration from the Hon’ble Prime Minister’s address at Lal Qila, reaffirming our commitment to building a self-reliant and prosperous India. CBIC remains dedicated to this national cause, ensuring efficiency, transparency, and integrity in all our services, contributing to the vision of a Viksit Bharat. As we stand united under the Tricolour, the words of former President of India, Dr. A.P.J. Abdul Kalam deeply resonate within us:
“I climbed and climbed
Where is the peak, my Lord?
I ploughed and ploughed,
Where is the knowledge treasure, my Lord?
I sailed and sailed,
Where is the island of peace, my Lord?
Almighty, bless my nation
With vision and sweat resulting into happiness”
A special All-India drive was conducted last year to verify and detect suspicious/fake GST registrations, aimed at preventing revenue loss to the Government. In light of its success, it has been decided to conduct a second All-India drive from 16th August 2024 to 15th October 2024, targeting fake registrations and bogus invoices. This drive will be conducted in a coordinated manner by both Central and State tax authorities, following common guidelines issued by the GST Policy Wing to ensure uniformity in action and effective coordination. The use of the GSTN Back Office for information sharing will be an integral part of this effort, along with a prescribed feedback and reporting mechanism. The CGST Zones are advised to closely monitor the progress of actions taken on suspicious GSTINs received from GSTN or identified locally, ensuring timely interventions and continued vigilance for success of the drive.
Fortifying the instructions already issued by the Board on the investigation process – maintaining ease of doing business while ensuring compliance with GST laws – the relevant portion has now been extended to audit proceedings. The instances noticed during the process of audit where there is more than one interpretation and likelihood of litigation the Zonal (Pr.) Chief Commissioner should follow the prescribed procedure in these instructions.
It is a moment of great pride for all of us as the Capacity Building Commission has recognized and provided a platform for NACIN Palasamudram to highlight its cutting-edge features and advancements in technology. The dedicated team at NACIN have set up an impressive kiosk showcasing Project Palasamudram in Vigyan Bhawan. Additionally, a presentation was made to the Hon’ble Minister of State (Personnel, Public Grievances and Pensions) and participating training institutes at Vigyan Bhawan highlighting the Immersive Training Facility and the innovative use of technology in the campus. NACIN leading the way!
In a significant action targeting trade-based money laundering (TBML), the officers of DRI Kolkata used data analytical tools to unearth a syndicate involved in illicitly transferring foreign exchange (FOREX) out of India by importing low-quality cosmetics at highly inflated prices. These goods, imported through non-functional firms, were overvalued in collusion with foreign suppliers and duty payment was avoided by warehousing them in the Free Trade Warehouse Zone (FTWZ) and subsequently exported without corresponding FOREX inflow. A total of 8 MT of `Dark Circle Essence’ and 20 MT of ‘Skin Tightening Gel’, found not fit for human application and having declared value of Rs. 199.27 Crores, were seized under the provisions of the Customs Act. Great work!
On the GST side, DGGI Kozhikode Regional Unit detected a case of nonpayment of GST by Indian office of a larger international membership organisation. While the Indian office was engaged in collecting entrance fee and annual membership fees from the members of affiliated clubs in India towards the services supplied to such members by the Indian office for the services received from abroad, the Indian office did not pay GST on such supply of services. On being pointed out the present legal position of levy of GST on club or association service, the office in India has discharged the entire tax dues along with interest and applicable penalty amounting to Rs. 230.30 Crore. Commendable work by the officers!
Until next week!
Yours sincerely,
(Sanjay Kumar Agarwal)
All Officers and Staff of the Central Board of Indirect Taxes & Customs.
