Leading insurance companies under GST scanner for alleged fake invoicing

Leading insurance companies have come under the scanner of the investigations wing of the Goods and Service Tax (GST) administration for allegedly issuing fake invoices of commissions to agents.

The Directorate General of GST Intelligence (DGGI) has started investigating cases against these companies at their Mumbai offices, sources said.

Notices have also been issued to vendors of these companies, they added.

The case relates to the issue of invoices to agents by insurers for their commissions and payment of GST to the government by these companies under the Reverse Charge Mechanism (RCM). Generally the seller of the service pays GST