A law enforcement organization called GST Intelligence has discovered that 15 insurance companies, numerous intermediary marketing firms, numerous Non-Banking Financial Companies (NBFCs), and banks have collectively evaded taxes to the tune of Rs 824 crore. Meanwhile, In multiple cities, the offices of insurance companies, intermediary marketing/branding firms, NBFCs, and banks were searched by GST Intelligence Officers in Mumbai.
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On the other hand, According to DGGI (Directorate General of GST Intelligence) sources, the investigation was launched as a result of specific allegations that ICICI Prudential Insurance had obtained ineligible credit.
The investigation found that ICICI Prudential had claimed and used an ineligible tax credit without actually providing any goods or services in exchange. During the investigation, they voluntarily paid Rs 100 crore in cash.
Rs 824 crore GST fraud detected; ICICI Prudential among 15 insurance firms under scanner
The probe revealed that ICICI Pru had availed and utilised ineligible ITC without the underlying supply of goods or services. “They have volu…https://t.co/qSYkmkzRR8 https://t.co/AARg1ih6DD
— rameshkotnana (@rameshkotnana1) September 30, 2022
Meanwhile, according to statements made by important participants, insurance companies have been using the modus since the introduction of the Goods and Services Tax. A total of Rs 824 crore worth of GST evasion has so far been discovered. According to officials, several insurance companies that took advantage of the invalid ITC have voluntarily paid a total of Rs 217 crore in cash. They also stated that additional investigations are ongoing.
It added that increased compliance, inflation-driven increases in nominal GDP and higher imports as a result of rising commodity prices have all contributed to the overall increase in Goods and Services Tax collections over the past two years.
It also stated that the increased compliance as a result of new measures to prevent tax avoidance that went into effect on January 1, 2022, will help the Goods and Services Tax collections in the short term.
The total amount of GST collected in August was 1.44 trillion. An official order from the central government stated that the key Goods and Services Tax legislative changes that were included in the Finance Act earlier this year will go into effect on October 1st.
