Weekly newsletter from Chairman, CBIC dated 04/10/2021

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
North Block, New Delhi-110001
Tel. No. +91-11-23092849, Fax : +91-11-23092890
E-mail : ajit.m@gov.in

Date: 04th October 2021

D.O.No.91/CH(IC)/2020

The month of October has started off on a positive note, with the gross GST revenue collection achieved being Rs. 1,17,010 crores for the month of September, 2021. This is higher by 23% compared to the corresponding period of the previous year.

During the week that has passed by, the Hon’ble Union Minister for Finance and Corporate Affairs Ms. Nirmala Sitharaman held meetings with officers of the department at Chennai and Hyderabad accompanied by Revenue Secretary and senior officers of CBIC. She appreciated the professionalism exhibited by Customs during the times of Covid pandemic. She also appreciated the fact that the GST revenue collection which has constantly been above the Rs. One lakh crore mark is now establishing a sustained new monthly benchmark of over rupees one lakh fifteen thousand crore. This is an important barometer of the health of the economy and an indication of its revival. At Hyderabad, the Hon’ble Finance Minister appreciated the useful and interactive session with the officers. These interactive sessions have been motivating and invigorating our officers in the field.

Board, during the last VC, had sensitised officers that they should proactively hold webinars and outreach programs in the local language also. This was in the context of the large number of decisions taken during the 45th GST Council meeting. In this regard, I am happy to note that Pune GST and Customs Zone has conducted a webinar in Marathi for its officers. Hyderabad GST CX & Customs Zone have got released a Telugu version of the GST Council decisions for the benefit of the trade, by the Hon’ble Union Finance Minister during the meeting at Hyderabad. These are very welcome steps. As constantly emphasised during VCs and in my letters, the Zones should reach out to tax payers in the local language, in an attempt to demystify law and procedure.

Last week, the Kanpur Regional Unit of DGGI has detected a case of clandestine removal of Branded Manufactured Tobacco valued at Rs. 8 crores approximately and effected a cash seizure of Rs.1.23 crores. DGGI Chennai Zonal Unit has detected a case of irregular availment/utilization of ITC wherein the assessee had availed ineligible ITC to the tune of Rs. 85 crores with respect to inward supplies relating to construction of buildings. ITC of Rs. 62.83 crores has so far been reversed. DGGI Raipur ZU has detected and recovered Rs. 148.77 crores from an assesee availing ITC of Compensation Cess on raw material used and its consequently claim as refund after exports were made. In this case, the export product is out of the ambit of compensation cess. DGGI, Hyderabad Zonal Unit had detected a case involving Rs. 118 crores and recovered Rs. 7.70 crores towards non-payment of GST pertaining to receipt of consideration in the form of Transfer of Development Rights (TDR).

The Principal Chief Commissioner GST, Mumbai Zone, has informed that to bring to book those gaming the system, CGST Mumbai Zone has launched a special drive through its Central Intelligence Unit (CIU). This unit undertakes data analytics and disseminates actionable intelligence to the Commissionerates under their jurisdiction. The inputs from CIU has resulted in the arrest of 6 persons and brought to light 17 fake networks in the past fortnight i.e. from 15.09.2021 to 01.10.2021. The tax evaded by these fake networks is reported to be Rs. 834 crores and Rs. 1 crore has been recovered so far.

I congratulate the Officers and Staff for the above detections.

Government has started off a month-long special campaign from 2nd to 3151 October, 2021 to dispose of pendency in all Ministries and Departments. A dedicated portal with a dashboard has been launched by DARPG with its focus on citizen centric governance and to enhancing ease of living for the common man. The list of pending issues for disposal by formations under CBIC has been circulated by the Coordination Section of CBIC. The respective action owners may chalk out the cause of action on this pendency and take efforts to dispose them. The feedback on the action taken should be informed to the Coordination Section so that the dashboard is updated on a real time basis. Further, DG HRD has also advised each Zone/ Directorate to undertake at least one outdoor cleanliness activity during the aforesaid period. Zones and Directorates may ensure compliance. The matter may be given top priority.

I am happy to inform that during the Finance Minister’s interaction in Chennai, a trade facilitation measure for exporters, provided through a mobile app to ease the process of reclaiming blocked IGST refund held up due to data entry and other errors made, was show cased. While congratulating Ms. M. Divya, Deputy Commissioner, Import Commissionerate, Chennai, for developing this App, I would like to encourage officers to come up with such innovative steps as part of the Department’s efforts to enhance ease of doing business.

Yours sincerely

(M. Ajit Kumar)

To,

All Officers and Staff of Central Board of Indirect Taxes and Customs