You are here: Home » Economy & Policy ยป News
Gadkari inaugurates two Rs 3,390-cr national highway projects in Bihar
Indian warehousing needs $3.8 bn to meet 223 mn sq ft demand in next 3 yrs
Business Standard

Tax-authorities tighten noose around under-invoicing of Chinese imports

Tax authorities suspect a tax evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020

tax | China | Customs

BS Web Team  |  New Delhi 

India imports

authorities in India are investigating under-invoicing of goods imported from after the trade data highlighted a glaring difference of around $12 billion in the data sourced from and India, the Economic Times reported.

On comparison, the trade data from the two countries show invoiced into the country are far less than exports from to India. Taking cognizance of the same, the authorities have issued tax-evasion notices to 32 importers since September. authorities suspect a evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020. And more such notices are likely to be issued by the tax authorities in the coming days, the report said.

In a 2019 report, a US-based think tank Global Financial Integrity said that India lost a staggering $13 billion, over Rs 90,000 crore, to trade mis-invoicing and it said most of it relate to from China.

According to a senior government official these largely involve electronics goods, gadgets, and metals, the Economic Times report said.

Why are electronic goods, gadgets, and metals facing under-invoicing?

To encourage domestic production, the has levied import duties on electronic goods and mobile phones and this increased duty has resulted in increased cases of "under-invoicing" and tax evasion from businesses to dodge duties.

According to the official trade data, India imported goods worth $79.16 billion from January to September 2022. While data from China showed that country's exports to India stood at $89.99 billion in the same period.

This gap has only increased over the years. For instance, in 2019, this gap stood at $6 billion as India's imports from China stood at $68.35 billion, while China's data showed exports at $74.92 billion. In 2020, this increased to $8 billion in 2020 and $10 billion in 2021, the report said.

Industry take

However, the industry claims that this gap is a result of the time lag in the delivery of consignments and transactions on the high seas and there is not much to it. Some have also sighted the difference in the interpretation of data by different authorities as a probable reason.

Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Mon, November 14 2022. 21:07 IST