The Anti Evasion Wing of Mumbai Central Commissionerate of the Central Tax Authority CBIC received intelligence regarding a conspiracy to monetize fraudulently obtained Input Tax Credit by the route of claiming cash refunds of zero-rated supplies exported out of the country.

As a follow-up, a case has been unearthed where two companies, namely, M/s. Elenya India Trading Pvt. Ltd. and Faxon India Trading Pvt. Ltd. have used the same modus operandi to fraudulently avail Input Tax credit to the tune of Rs 12.5 crore. This was utilised to meet the GST tax liability on exported goods and in turn, claim a huge IGST cash refund. They would purchase goods of low value from the local market in cash without any bill and exported the same. In order to claim and utilise ITC (Input Tax Credit), they purchased GST invoices from companies which were found to be non-existent and the transactions were only on paper.