DGGI sends show cause notices to many insurance companies over tax evasion concerns
By MYBRANDBOOK
The Directorate General of GST Intelligence (DGGI) has sent show-cause notices to some insurance companies, such as HDFC Bank, Go Digit Insurance, and Policybazaar, for issuing fake invoices to claim input tax credit without providing any service. The show-cause notices claimed that these companies issued fake invoices for many insurance companies without providing any service.
DGGI officials have sent out summons and notices to these intermediaries in the last 15 days. At least 120 insurance intermediaries and aggregators from across the country are under scrutiny.
The DGGI started its investigation in 2022 and authorities have reportedly found evasion to the tune of Rs 2,250 crore and are centered on invoices raised from 2018 to March 2022.
As per an official, “Our investigation has revealed that the insurance companies availed input tax credit without the underlying supply of goods and services, based on fake invoices provided by these insurance intermediaries. We have sent notices”.
As per the GST law, under Rule 16 of the CGST Act, 2017, a buyer must have an invoice on which GST has been paid, and such a buyer must have received the goods or services, for availing input tax credit.
Officials said that these entities had formed an arrangement to pass on ineligible Input Tax Credit in the guise of marketing services and fraudulent invoices were produced.
Earlier, DGGI sent notices to about 10-12 mutual fund houses seeking details of their past transactions. In February, DGGI said these mutual funds have booked certain expenditures, against which they have wrongfully claimed input tax credit (ITC) to lower their GST liability. DGGI alleged that this pertains to mutual funds claims in 2017-18, where it has found discrepancies in accounting by Asset Management Companies for expenses, capped at 2.25 per cent of assets under management (AUM).
Singapore to remove One-Time Passwords from Bank Accounts
According to the Monetary Authority of Singapore, clients who utilise secur...
Is 375 million Airtel subscribers database breached?
When a hacker claims to have accessed and put up for sale a customer databa...
The government of India intends to construct a single portal f
A single portal will be launched by the Indian government to list all of it...
OpenAI offers GPT-4o, a faster model available to all users at
GPT-4o, a faster and more sophisticated AI model, is made available to all...
Icons Of India : Debjani Ghosh
Debjani Ghosh is the President of the National Association of Software...
Icons Of India : MUKESH D. AMBANI
Mukesh Dhirubhai Ambani is an Indian businessman and the chairman and ...
Icons Of India : ALOK OHRIE
Alok Ohrie leads Dell Technologies’ India business, overseeing Sales...
STPI - Software Technology Parks of India
STPI promotes and facilitates the growth of the IT and ITES industry i...
RailTel Corporation of India Limited
RailTel is a leading telecommunications infrastructure provider in Ind...
GSTN - Goods and Services Tax Network
GSTN provides shared IT infrastructure and service to both central and...
Indian Tech Talent Excelling The Tech World - Sanjay Mehrotra, CEO- Micron Technology
Sanjay Mehrotra, the President and CEO of Micron Technology, is at the...
Indian Tech Talent Excelling The Tech World - JAYASHREE ULLAL, President and CEO - Arista Network
Jayshree V. Ullal is a British-American billionaire businesswoman, ser...
Indian Tech Talent Excelling The Tech World - RAVI KUMAR S, CEO- Cognizant
Ravi Kumar S, appointed as CEO of Cognizant in January 2023, sets the ...