A Goods and Services Tax (GST) evasion worth Rs 824 crore has been detected for 15 insurance as well as several non-banking financial companies (NBFCs).
A Goods and Services Tax (GST) evasion worth Rs 824 crore has been detected for 15 insurance as well as several non-banking financial companies (NBFCs).
According to sources known to developments, these companies were reportedly found to be benefiting from input tax credit (ITC) without underlying goods and services supply.
Sources informed that based on specific inputs received against ICICI Prudential Insurance for reportedly benefiting ineligible ITC without underlying goods and services supply, some other common intermediaries were also identified.
They told that on further investigation it was revealed that these entities had reportedly formed an arrangement to pass on ineligible ITC in the name of marketing services and fraudulent invoices were reportedly raised by following a systematic modus operandi in connivance with each other.
Sources known to developments said that the modus operandi was systematically planned and performed mainly at the behest of insurance companies.
The investigation is found to have revealed that the insurance companies had been executing the modus since the inception of GST, sources said also.
Later on, searches were conducted by the Directorate General of GST Intelligence (DGGI) officials at the places of several insurance companies and NBFCs in multiple cities said sources.
While the searches are still ongoing, sources said that ICICI Prudential reportedly paid Rs 100 crore in cash voluntarily under Section 74(5) of CGST Act, 2017 during the ongoing investigation.
Sources further informed that so far, GST evasion to the tune of Rs 824 crore has been unveiled and various insurance companies which used and benefited from ineligible ITC have voluntarily paid a total amount of Rs 217 crore in cash under the same provision of Act.
