Latest News | GST Officers Detect Rs 824 Cr Tax Evasion by Insurance Cos
Get latest articles and stories on Latest News at LatestLY. GST officers have detected Rs 824 crore tax evasion by 15 insurance companies, intermediaries and banks through issuance of fake invoices, officials said on Thursday.
New Delhi, Sep 29 (PTI) GST officers have detected Rs 824 crore tax evasion by 15 insurance companies, intermediaries and banks through issuance of fake invoices, officials said on Thursday.
Acting on specific inputs, GST Intelligence Officers in Mumbai searched the premises of a number of corporates -- insurance companies, intermediary marketing/branding companies, NBFCs and banks, in multiple cities.
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During the search investigations, many cases of availment and utilisation of ineligible input tax credit (ITC) without underlying supply of goods or services were detected, officials said.
As many as 15 insurance companies, intermediaries, marketing companies, NBFCs and banks were allegedly following this modus operandi and evading GST.
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The investigations revealed that these entities had formed an arrangement to pass on ineligible ITC in the guise of marketing services and fraudulent invoices were raised in connivance with each other, officials said.
Investigation points to systematically planning and executing the modus operandi mainly at the behest of insurance companies, they added.
Statements of key persons involved indicate that the insurance companies have been executing the modus since the inception of GST.
So far, GST evasion to the tune of Rs 824 crore has been unearthed. Various insurance companies which have availed and utilised the ineligible ITC have voluntarily paid a total amount of Rs 217 crore in cash, officials said, adding further investigations are in progress.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)