CBIC Chairman Emphasises Vigilance Against Illicit Trade

Sanjay Kumar Agarwal, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), underscored the pressing challenge of illicit trade as India emerges as a global force in international trade. Speaking at the inauguration of the 9th edition of 'MASCRADE 2023,' organized by FICCI CASCADE, Agarwal highlighted the far-reaching consequences of illicit trade on national security, legitimate manufacturing, government revenue, public health, safety, and consumer trust. 

"Illicit trade undermines national security, risks legitimate manufacturing, leaks government revenue, jeopardizes public health and safety, and erodes the trust of consumers and investors alike. Tackling this issue is fundamental for safeguarding India's economic stability, ensuring fair competition, and fostering an environment conducive to sustainable growth and ease of doing business," Agarwal stated. 

Agarwal also acknowledged the remarkable increase in Goods and Services Tax (GST) revenue, with collections consistently surpassing the Rs 1.6 lakh crores mark. April 2023 saw record GST revenue collection at Rs 1.87 lakh crores, reflecting not only GDP growth but also increased compliance levels. The government's efforts to encourage self-compliance and combat fraudulent activities have led to decisions in the GST Council meetings aimed at curbing fake Input Tax Credit (ITC). 

Regarding anti-smuggling measures, Agarwal affirmed the customs officers' vigilance in detecting outright smuggling and concealment in trade consignments. He highlighted CBIC's exploration of advanced technologies, including Big Data Analytics, Artificial Intelligence (AI), Image Analytics, Natural Language Understanding, Network Analytics, and Open-Source Intelligence to enhance customs and GST operations, manage risks, and ensure compliance. 

Anil Rajput, Chairman of FICCI CASCADE, noted the global significance of combating terror funding and illicit trade. He commended the Indian government's initiatives, such as the establishment of the National Forensic Science University and the creation of national and global databases on crimes. Rajput stressed the need for a collective partnership among compliant nations to promote legal industry, penalize illicit traders, and curb finance flow for terror funding.  

The government's proactive measures to deter nefarious entities have resulted in a 40 percent increase in instances of duty evasion identified by the Directorate of Revenue Intelligence, totaling Rs 3,924 crore, compared to Rs 2,810 crore in 2020-21. 

While substantial progress has been made, Agarwal emphasized the importance of simultaneous enforcement and fiscal measures to achieve desired outcomes in the ongoing battle against illicit trade. The fight against illicit trade and terror funding, he noted, transcends borders, regions, and industries, requiring a united effort to ensure national prosperity and security.