CBI Launches Investigation into Fraudulent GST Refund Scheme Worth Rs 100 Crore

CBI Uncovers Rs 100 Crore GST Refund Scam; Customs Officials, Traders Under Probe

In a sweeping enforcement action, the Central Bureau of Investigation (CBI) has unearthed a large-scale GST refund fraud—estimated at around ₹100 crore—spanning multiple districts in Bihar and Jharkhand. The investigation has brought into focus a nexus between senior Customs officers and private exporters, who allegedly siphoned public funds through bogus export documentation.

Operation Spread Across Five Cities

In coordinated searches conducted in June 2025, the CBI raided premises in Patna, Purnea, Jamshedpur, Munger, and Nalanda. The crackdown followed months of surveillance into suspicious refund claims and exports routed through Land Customs Stations (LCS) bordering Nepal—particularly Bhimnagar, Jaynagar, and Bhittamore.

At the Heart of the Scam: Paper Exports, Real Refunds

According to the FIR and early findings, multiple exporter firms submitted forged shipping documents—covering goods like tiles and auto parts—despite no physical movement of goods across borders. By keeping invoice values below ₹10 lakh, the parties allegedly avoided detailed scrutiny and gained quick superintendent-level clearance.

Investigators suspect that refund claims were deliberately made under the higher GST slabs of 18% and 28%, significantly amplifying the amounts siphoned. Many of the firms traced in the documentation were found inactive or non-existent at their registered addresses.

Who’s Under the Scanner

The probe has named several individuals, including:

• Ranvijay Kumar, then Additional Commissioner of Customs (Patna)
• Four former Customs Superintendents, some later promoted to Assistant Commissioner roles
• Ganga Singh, a clearing agent based in Kolkata
• Close to 30 exporter and importer entities whose role is currently under scrutiny

CBI sources suggest that export approvals were allegedly cleared based on oral instructions from senior officials, bypassing mandatory physical verification and Let Export Order protocols.

Seizures and Evidence

The raids led to the recovery of:

• Seven gold bars (100g each)
• Multiple mobile phones and laptops
• Several files containing incriminating export records and refund claims

Digital forensics is underway to establish the full scope of the operation and trace the end-use of diverted funds.

Legal and Regulatory Repercussions

A criminal case has been registered under the Indian Penal Code and Prevention of Corruption Act. The CBI is examining the monetary trail and beneficiary accounts, with more arrests likely as the investigation progresses.

Why This Matters for Exporters and Tax Professionals

The case underscores growing scrutiny on high-value GST refund claims, particularly in border trade where oversight vulnerabilities persist. Exporters and customs brokers are advised to exercise heightened due diligence, ensure physical documentation aligns with actual trade, and avoid routing transactions through shell entities.

With tax authorities tightening audit and refund processes, businesses are urged to consult qualified professionals before making large refund claims—especially those falling under higher tax brackets