CONFIDENTIAL

URGENT
No. GST/INVATC Recovery Stg./20-21
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST-Investigation Wing
Room No.01, 10h Floor,
Tower-2, 124, Jeevan Bharti Building,
110001.
Connaught Circus, New Delhi-
Dated the 19" January, 2021

OFFICE MEMORANDUM
Subject: Strategy for enhancing recovery in ITC Fraud cases - regarding

While large detections are being made in respect of ITC fraud cases, the recovery
of following up with availers of
percentage is very low. The conventional investigation strategy
the fraudulent ITC by means of search/summons etc. is a time consuming exercise compounded
Thus, despite firm evidence that ITC has been
by the manpower constraint of the formations.
incorrectly availed, the recipients are not put on notice and continue to hold on to the fraudulent
ITC.

2 In this background DGGI and CGST formation(s) who have booked the case are
of their legal obligation to reverse/
requested to advise the first stage recipient of fraudulent ITC
with interest, in all cases where the issuer(s) are found to be
non-
pay the inadmissible ITC
in this regard is
existent and 'fake' ITC is passed on. A draft self-explanatory Advisory
enclosed. All Advisories must be issued under DIN. It is clarified that the issue of the suggested
concerned should
advisory is not substitute for action prescribed by Law. The formation
a
should support their
prioritize the recovery of the fake ITC at the earliest and the advisory
endeavour.

3. This issue with the approval of Member [Investigation], CBIC, New Delhi.

(Neeraj Prasad)
Commissioner (GST-Inv.), CBIC
Encl: As above Tel. No.: 011-21400623
Email id: gstinv-cbic@gov.in

To
Director General [DGGI], New Delhi
1. Principal
of CGST, All Zones.
2. Principal Chief Commissioner(s)/ Chief Commissioner(s)
 Subject: Advisory for reversal/payment of inadmissible ITC reg.

The Directorate General of GST Intelligence

(DGGI)/ CGST authorities have
detected a case of fraudulent passing on of ITC credit by
supplier M/s.(GSTIN
t o numerous recipients/availers including you. Strict legal action has already been
initiated against the supplier including arrest of the offenders, where
required. The
investigation is on-going and would be concluded by legal action against all involved
including the recovery of the inadmissible ITC and imposition of penalties.

The supplier's records indicate that he has passed on inadmissible ITC of

RS. .Rs. to you. It is strongly advised that you may not avail the same and,
if already availed, immediately reverse the same alongwith due interest thereon under
intimation to the undersigned. The amount indicted herein has been determined by
the investigation done so far and this may not be the final amount.

This advisory is being issued in order give taxpayers an opportunity to

voluntarily comply with the law. Due consideration would be given to your prompt
compliance while concluding the investigation. No further advisory would be issued.

Please contact the undersigned in case of any clarification.