Sikkim Firms Face Scrutiny Over Excess GST Refunds

Firms based in Sikkim are facing intensified scrutiny from GST authorities over allegations of claiming excess refunds amounting to over Rs 1,000 crore. The investigation centers on the potential misuse of the GST budgetary support scheme, which was designed to promote industrial development in the state. The scheme allows eligible units to claim a refund of the central share of GST paid in cash. However, the probe, initiated by the Siliguri CGST Commissionerate, revealed that several companies, including large corporates, allegedly inflated their value addition figures to claim refunds at rates higher than those permitted by the scheme's guidelines. This has reportedly been happening since the scheme's inception in 2017. The ongoing investigation aims to quantify the exact amount of the undue benefits availed and to take appropriate action against the erring firms.