15 insurance firms under GST Intelligence radar for GST fraud
The GST Intelligence has detected tax evasion of Rs 824 crore by 15 insurance companies including ICICI Prudential, multiple intermediary marketing companies, multiple Non-Banking Financial Companies (NBFCs) and banks, for allegedly availing input tax credit (ITC) without the underlying supply of goods and services.
The probe revealed that ICICI Prudential had availed and utilised ineligible tax credit without the underlying supply of goods or services. The officers searched the premises of a number of insurance companies, intermediary marketing/branding companies, NBFCs, and banks in multiple cities and detected similar cases of credit fraud.
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. Investigation points to systematically planning and executing the modus operandi mainly at the behest of insurance companies.
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. Further investigations are in progress.
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