GST Fraud 2019 VS Data Analytics

Department of Revenue through data analysis has determined 931 cases of fraudulent GST. The maximum numbers of cases for Input Tax Creditfrauds are booked around the Kolkata zone followed by Delhi, Panchkula(Haryana), and Jaipur.
Refunds of more than Rs 28,000 crore is believed to have been submitted by over 27,000 taxpayers as much on account of the inverted duty system this financial year. Finance Ministry sources confirmed that such identified taxpayers that have bought goods from tax-evading non-filers would face scrutiny and verification as necessary.
Dr. Ajay Bhushan Pandey Union Revenue Secretary, reviews and monitors this on weekly bases. A total amount of Rs. 1057 crore has been recovered from 6641 booked cases involving 7164 entities till November last year.
Sources included that investigators in Delhi have busted by way of data analytics a great fraud case, in which fraudsters developed a network of more than 500 entities comprising of fake billers, intermediary sellers, distributors and bogus manufacturers of Hawai chappals for availing and encashing fake ITC credits. The bogus manufacturers produced in Uttarakhand had been making supplies to various other fictitious entities & merchants in Gujarat, Maharashtra and Tamil Nadu. The raw materials for all the chappals, referred to as EVA compound, are chargeable to 18% duty whereas chappals are chargeable to GST of 5%. As an outcome, the law enables the makers to claim refunds of inverted duty structure in cash.