Jobaaj Stories
Indian GST Intelligence Authority has served show cause notices to several insurance firms, some of which are listed entities while accusing them of engaging in tax evasion activities.
According to the Directorate General of GST Intelligence (DGGI), HDFC Bank, Go Digit Insurance and Policybazaar are amongst the list of more than 120 insurers who have been falsely raising invoices to claim Input Tax Credit which they are not eligible for.
Also Read, how this technology is strengthening the roots of India
In the last 15 days, the DGGI has sent show-cause notices and summons to insurers who have been fabricating invoices and falsely claiming ITC. The investigation focuses on invoices raised between 2018 and 2022.
The investigation, which began in 2022, has reportedly unearthed tax evasion to the tune of a staggering Rs 2,250 crores. These firms would procure false bills for marketing services and claim ITC for goods or services that they never provided.
It is a classic tax evasion scheme committed by several businesses throughout the country, done in a bid to avoid paying taxes. In such cases, the business becomes liable to pay a 100% penalty.
According to the tax officials, there has been some recovery through its efforts. Around Rs 700 crores have been collected from such companies as pre-deposit while summons has been served to 12 companies.
The DGGI has been cracking down on such cases of tax evasion as it recently sent notices to Mutual Fund houses over alleged tax evasion done by misclassifying expenses, asking for details of their transactions.
- Aman Agarwal
