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Introduction: The Ministry of Finance, Government of India, recently hosted a groundbreaking event – the National Conference of Enforcement Chiefs of the State and the Central GST Formations. This article delves into the key highlights of the conference, emphasizing efforts to fortify India’s tax enforcement mechanisms.

Detailed Analysis: The conference witnessed thematic sessions that addressed crucial issues plaguing the taxation landscape. Delegates explored topics such as GST evasion typologies, favored methods by tax evaders, and the significance of collaborative efforts. Participants emphasized the need to leverage technology not only for detecting fraudulent behavior but also for proactively preventing it by identifying high-risk taxpayers.

Discussions extended to combating fake invoicing and its associated challenges, including money laundering, identity theft, and circular trading. The Directorate General of GST Intelligence shared best practices and deterrent actions, contributing to a productive one-day conference.

The Hon’ble Union Finance Minister proposed bi-annual National Conferences of Enforcement Chiefs, emphasizing the importance of field formations engaging freely with the trade. This approach aims to improve the Department’s perception in the eyes of taxpayers, fostering a more collaborative and transparent tax ecosystem.

The article also highlights the celebration of International Women’s Day by the Central Board of Indirect Taxes & Customs, aligning with the government’s women-led development approach.

On the anti-evasion front, commendable cases were reported in both Customs and GST. The Directorate of Revenue Intelligence (DRI) made notable strides against illegal drug smuggling, showcasing the dedication and teamwork of officers.

Three major operations across Araria, Mumbai, Mathura, and Gurgaon led to significant seizures, including 40 kg of Foreign Origin Gold, 6 kg of Silver, Rs. 5.43 Crore cash, and the arrest of 12 individuals. On the GST front, the Meerut CGST Commissionerate exposed a syndicate fraudulently claiming Input Tax Credit, uncovering a network of 232 fake firms. Interestingly, ‘Full Fledged Money Changer Companies’ (FFMCs) were implicated in money routing.

Conclusion: The strides made by the Ministry of Finance, Department of Revenue, and the Central Board of Indirect Taxes & Customs are evident in the success stories presented during the National Conference. The commitment to combating tax evasion, ensuring transparency, and leveraging technology reflects a progressive approach. As officers of the 2014 batch assume new positions, the call to elevate professionalism and service standards resonates. This article encapsulates the dynamic landscape of India’s tax enforcement, showcasing a dedication to fortify the nation’s financial backbone.

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CBIC Chairman’s Weekly Newsletter-11th March, 2024

Government of India
Ministry of Finance
Department of Revenue

Central Board of Indirect Taxes & Customs

DO No. 11/News Letter/CH(IC)/2024 Dated: 11th March, 2024

Dear Colleague,

Nei hou from Hong Kong. I am gathering my thoughts over the last week as I sit amidst the bustling energy and vibrant culture of this incredible city.

The inauguration of the first-ever National Conference of Enforcement Chiefs of the State and the Central GST Formations in New Delhi by the Hon’ble Union Finance Minister brought to the fore ongoing efforts to streamline and strengthen its tax enforcement mechanisms.

During the focussed thematic sessions, the delegates from Central and State GST formations discussed various issues such as GST evasion typologies, preferred methods by tax evaders and prevalent sectors, the importance of collaborative efforts, the need to utilize technology effectively not only to detect existing fraudulent behaviour but also to proactively prevent it by identifying high-risk taxpayers. Participants also deliberated on addressing the menace of fake invoicing and its associated issues like money laundering, identity theft, and circular trading. Best practices and deterrent actions implemented by the Directorate General of GST Intelligence were also shared. All-in-all, it was a productive one-day conference, and the suggestion of the Hon’ble FM was collectively embraced to conduct the National Conference of Enforcement Chiefs of State and Central GST Formations bi­annually. Hon’ble FM also advised that the field formations should engage freely with the trade. This will make a definitive impact on improving the perception of the Department in the eyes of the taxpayers.

CBIC Chairman’s Weekly Newsletter-11th March, 2024

Last week, the Board celebrated International Women’s Day and saluted the spirit of Nan Shakti. This year’s theme, “Invest in Women: Accelerate Progress,” resonates deeply with the Government’s women-led development approach towards India’s progress and prosperity.

On the anti-evasion front, I noticed many good cases being booked in both Customs and GST. Commendable job by the officers with exceptional team work!

The Directorate of Revenue Intelligence (DRI) continued its offensive against illegal smuggling of drugs. Officers of DRI Chennai Zonal Unit with the assistance of Indian Coast Guard mounted surveillance over Gulf of Mannar on the basis of specific inputs. During the surveillance at deep sea, a country boat was intercepted after a brief hot pursuit and rummaging of the boat led to detection of 05 sacks concealed inside the boat, which on examination were found to contain 99 kgs of Hashish, having a value of around Rs. 108 crores in the illicit international market. The operation led to the arrest of four individuals.

In three major operations across India in Araria, Mumbai, Mathura and Gurgaon on single day, DRI seized 40 kg Foreign Origin Gold, 6 kg Silver, Rs. 5.43 Crore cash and arrested 12 persons.

On GST side, the Meerut CGST Commissionerate busted a syndicate that fraudulently claimed Input Tax Credit of over Rs. 1,000 crore through a network of 232 fake firms. Interestingly, the investigation revealed that ‘Full Fledged Money Changer Companies’ (FFMCs) were used for parking/routing of funds generated through fraudulently passed on ITC without any real recipient of the foreign currency. The accounts used for the routing of money have been provisionally attached and three persons have been arrested for their role in the entire fake billing racket.

Before I conclude, I extend my best wishes to the officers of the 2014 batch who have received their new place of posting as Joint Commissioners. Let your new positions serve as opportunities to further elevate the standards of professionalism and service within the Department. Embrace the challenges that lie ahead with enthusiasm and determination, and remember to bring your full potential to the table!

See you next week!

Yours sincerely,
(Sanjay Kumar Agarwal)

All Officers and Staff of the Central Board of Indirect Taxes & Customs.

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