The Central Board of Indirect Taxes & Customs (CBIC) highlighted several key developments in its latest newsletter. At the India International Trade Fair 2024, CBIC inaugurated its GST and Customs Pavilion themed “Facilitating Trade, Fostering Economy,” featuring educational activities and interactive displays. The Red Panda was introduced as CBIC’s mascot, symbolizing duty and trust. Aligning with the PM Gati Shakti National Master Plan, CBIC announced relaxations for Customs Cargo Service Providers (CCSPs), reducing insurance coverage requirements and synchronizing license renewals with AEO authorizations to promote ease of doing business.
The Directorate General of GST Intelligence (DGGI) Pune uncovered a tax evasion scheme by offshore online gaming platforms that manipulated UPI transactions and “mule accounts” to evade IGST. This led to the provisional attachment of 1,376 bank accounts with Rs. 2.10 crore secured.
In customs enforcement, Chennai International Airport’s Air Intelligence Unit intercepted gold smuggling attempts involving 19.567 kilograms of gold worth Rs. 15 crores. The smugglers, including first-time flyers, were lured with cash incentives. These updates reflect CBIC’s continued efforts to enhance trade facilitation, address tax evasion, and curb smuggling.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
DO No. 47/News Letter/CH(IC)/2024 Dated: 18th November, 2024
Dear Colleague,
Last week, the Board inaugurated the CBIC’s GST 86 Customs Pavilion at the India International Trade Fair 2024 in New Delhi, themed “Facilitating Trade, Fostering Economy”. The pavilion aims to spread awareness through Educational Videos, helpdesks to resolve queries, career guidance, a peek into the world of CBIC through digital displays, Nukkad Natak, Magic Show, Puppet Show, Caricature Artist and informative brochures. Further, the event introduced the Red Panda as the CBIC’s official mascot to represent the GST 86 Customs at the India International Trade Fair 2024. The Red Panda embodies the values of duty, precision, and trust. Red Panda’s dual nature, gentle yet strong, reflects the mission of the CBIC to balance delicacy with strength, and ensure the free flow of trade while maintaining vigilant oversight.
In line with the PM Gati Shakti National Master Plan’s goals of improving logistics infrastructure, efficiency, and promoting sustainability, the CBIC has introduced key relaxations for Customs Cargo Service Providers (CCSPs). The reforms, introduced recently, include a reduction in the mandatory insurance coverage for goods stored in Customs areas from 10 to 5 days, reducing costs for service providers. Additionally, the license renewal process has been withdrawn for CCSPs meeting international AEO standards, synchronizing their licenses with their AEO authorization resulting in Ease of Doing Business for such logistics operators. These measures are part of the Government’s ongoing efforts to reduce the cost and compliance burden, improve the efficiency of EXIM operations, and facilitate global trade.
The DGGI Pune Zonal Unit has unearthed an organized tax evasion mechanism by offshore online gaming platforms. The investigation against certain entities operating from overseas territories revealed that these entities were wilfully evading IGST liabilities as mandated under Section 14A of the IGST Act read along with Rule 31A of the CGST Rules, which imposes 28% IGST on the face value of bets. As the blocking of URLs of these platforms did not yield much results, the officers resorted to tracing of financial transactions to identify the pipeline of revenue leakage. The probe uncovered that such websites/apps keep changing the linked UPI IDs every 30 seconds and move the funds through various accounts to evade scrutiny. Not surprisingly, the linked accounts were found to be “mule accounts” created using KYC documents of unrelated individuals. Using specialised software, DGGI Pune identified the chain of bank accounts resulting in the provisional attachment of 1,376 bank accounts securing a reported balance of Rs. 2.10 crore across 295 accounts. This operation underscores the misuse of the evolving digital economy and banking systems. Excellent investigation by DGGI Pune!
On the Customs preventive front, officers of the Air Intelligence Unit (AIU) at Chennai International Airport intercepted 25 passengers from three inbound flights the same day and their thorough search led to recovery of 42 concealed 24 Karat crude gold chains, weighing a total of 19.567 kilograms and valued at approximately Rs. 15 crores. These gold chains were concealed in person of these passengers, many of whom were first-time flyers or tourists, and had been enticed by an unidentified individual abroad to act as carriers in exchange for Rs. 10,000 each. This interception showcases how smugglers are continually evolving new ways to conceal and smuggle gold illegally. The prompt action of Chennai Customs officers is highly commendable!
Until next week!
Yours sincerely,
(Sanjay Kumar Agarwal)
All Officers and Staff of the Central Board of Indirect Taxes & Customs.
