https://www.taxtmi.com/article/detailed?id=16627 Fraudulent export-linked GST arrangements using fake invoices, circular trading, shell entities, and paper exports of high-value goods are described as mechanisms for generating unutilized Input Tax Credit and unlawfully extracting cash from the public exchequer through refund claims under the IGST regime. The commentary distinguishes domestic circular trading from cross-border trade illusions and treats the latter as a more serious form of tax abuse because it converts tax incentives and refund mechanisms into instruments of illegal enrichment without genuine underlying commerce. The discussion identifies criminal enforcement under Section 132 of the CGST Act, read with Section 20 of the IGST Act, as the principal statutory response to such fraud, and notes that the Serious Fraud Investigation Office under the Companies Act is a specialised investigative mechanism for layered corporate networks. en-us Thu, 11 Jun 2026 08:34:50 +0530 Thu, 11 Jun 2026 08:34:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=16627 Fraudulent export-linked GST arrangements using fake invoices, circular trading, shell entities, and paper exports of high-value goods are described as mechanisms for generating unutilized Input Tax Credit and unlawfully extracting cash from the public exchequer through refund claims under the IGST regime. The commentary distinguishes domestic circular trading from cross-border trade illusions and treats the latter as a more serious form of tax abuse because it converts tax incentives and refund mechanisms into instruments of illegal enrichment without genuine underlying commerce. The discussion identifies criminal enforcement under Section 132 of the CGST Act, read with Section 20 of the IGST Act, as the principal statutory response to such fraud, and notes that the Serious Fraud Investigation Office under the Companies Act is a specialised investigative mechanism for layered corporate networks. Articles Goods and Services Tax - GST Thu, 11 Jun 2026 08:34:50 +0530 https://www.taxtmi.com/article/detailed?id=16627