CBIC unveils new rules to curb leakage

2021-04-07 01:20:39

NEW DELHI: The Central Board of Indirect Taxes and Customs (CBIC) has notified a new set of rules for verification of exporters, importers and customs brokers under the Customs Act to check leakage, especially in case of goods and services tax (GST). Similar provisions had been put in place for GST recently.
New importers, exporters and customs brokers as well as those identified by a customs commissioner will have to undergo identity verification, including verification of incorporation documents, Aadhaar, PAN as well as the physical verification of the place of business. In case any default is discovered, clearance of goods, drawbacks or refunds can be suspended.
“Overall, this is a good move on part of the government from the perspective of preventing revenue leakage and with GST collections on rise with the introduction of preventive regulations. It is hoped that these rules would lead to better customs duty collection as well. Having said this, the government will have to ensure that genuine taxpayers don’t face unnecessary hassles,” said Abhishek Jain, tax partner, EY says.

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