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Tax trouble: GST authorities quiz auto dealers on fake invoicing

Certain automobile dealers appointed by insurers/insurance intermediaries allegedly billed commission in excess of Irdai cap

fake invoicing
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Shrimi Choudhary New Delhi

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Expanding investigation into allegedly wrongful claims of input tax credit by insurance companies, the tax authorities are probing a section of automobile dealers who have supposedly generated fake invoices without providing any service, which is a punishable offence under goods and services tax (GST) law.

The authorities are learnt to have questioned the car dealers to explain the services they provided general insurance companies.

The investigators suspect car dealers pitched for insurance schemes that give them commissions in excess of those insurance regulations permit.

Fake invoices were being raised, without an underlying supply of services, and, on the basis of

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First Published: Apr 25 2023 | 11:29 PM IST

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