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Taxmen issuing notices to insurers for availing tax credit on fake invoices

GST officers have started sending notices to over a dozen insurance companies for availing input tax credit on the basis of bogus invoices in the last six years, sources said. These insurers have availed input tax credit (ITC) on the basis of invoices issued by intermediaries for providing services like advertising and marketing, although no such services were actually provided. As per the GST law, such availment of the ITC is not permissible as the supply of said service did not actually take place. As per the investigations by the Mumbai unit of the Directorate General of GST Intelligence, ITC of Rs 824 crore has been availed by 16 insurance companies. Out of this, the insurers had voluntarily paid Rs 217 crore. Sources said notices are being issued to these insurance companies for wrongful availment of ITC. Investigations revealed that these insurers were actually paying commission beyond IRDAI's permissible limit to their corporate agents in the garb of expenses related to ...

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

Issue of GST on intermediary services to foreign clients may get resolved

However, there could be issues in claiming input tax credit by these intermediaries

GST officers find tax evasion by offshore entities offering online betting

Tax officers have detected violation of GST law by offshore entities offering online betting and gambling platforms to Indian residents through mobile apps and are working on ways to tackle such mode of tax evasion, a source said. As per the prescribed procedure, all offshore entities providing services in India are required to register as supplier of OIDAR (Online Information Database Access and Retrieval) services under the Goods and Services Tax (GST) law. According to the source, there are many offshore entities providing platforms for online betting and gambling in the country but are not GST-registered and hence are not paying the required GST. "Although several overseas educational bodies offering online courses in India are registered as OIDAR, the entities providing online gaming, betting ad gambling platforms are not registered under GST. We are pursuing such cases and hope to bring them under the GST net," the source told PTI. These online betting and gambling apps are .

Under the scanner: Clutch of fund houses in a spot over tax credit claims

DGGI alleges tax credit claimed on expenses was much higher than prescribed limit

GST fraud a new challenge for UP govt; Noida sees cases double in 3 yrs

In the last three years, GST fraud in Noida has doubled as irregularities have been detected in 291 cases of GST evasion, for which a fine of Rs 75.82 crore has been collected

GST not applicable on transfer of Jaipur Int'l airport biz to Adani group

The transfer of Jaipur international airport operations by Airports Authority of India (AAI) to the Adani group is exempt from Goods and Services Tax (GST), the Authority for Advance Ruling has said. The AAI had approached the Rajasthan-bench of the Authority for Advance Ruling (AAR) seeking ruling on whether transfer of business to M/s Adani Jaipur International Airport Ltd is treated as supply as 'going concern' and whether GST is leviable on transfer of assets. Transfer of business as a going concern, as a whole, or independent part thereof, is considered as service under GST law and such supplies are exempt from goods and services tax. In its ruling dated March 20, 2023, the AAR said the business arrangement entered vide concession agreement dated January 16, 2021, between the applicant (AAI) and M/s Adani Jaipur International Airport is a transfer of going concern. The Adani Group had in October, 2021, taken over the operations, management and development of the Jaipur ...

GST evasion detection nearly doubles to Rs 1.01 trillion in FY23

GST evasion detection by tax officers almost doubled year-on-year to over Rs 1.01 lakh crore in the just concluded 2022-23 fiscal, an official said. During the last fiscal, a recovery of Rs 21,000 crore was made by the officers of the Directorate General of GST Intelligence (DGGI). The official said the government is taking steps to increase compliance and using data analytics and human intelligence to identify fraud. "DGGI officers have detected evasion to the tune of Rs 1,01,300 crore in 2022-23. Of this, recovery of Rs 21,000 crore have been made," the official told PTI. In 2021-22, DGGI, the investigative agency under the Goods and Services Tax (GST) regime, detected evasion of over Rs 54,000 crore and made a tax recovery of over Rs 21,000 crore. The total number of Goods and Services Tax (GST) evasion cases has gone up this fiscal with about 14,000 cases detected in 2022-23, up from 12,574 cases in 2021-22 and 12,596 cases in 2020-21. The modus operandi adopted by fraudsters

HC bench to decide on taxability of intermediary services to clients abroad

Situation arises as two judges of Bombay HC are divided over the matter, which has now been referred to a third judge

Intra-company services by offices registered separately to attract GST: AAR

GST applicable even if employees appointed for firm as a whole, says Tamil Nadu authority

Firms with Rs 100 cr turnover have to upload e-invoices within 7 days

The new rule starts in May and it will apply to document-type invoices in the GST system

Delhi HC upholds levying GST on auto ride through platforms like Uber

The Delhi High Court has upheld the Centre's decision to levy GST on the services offered by an auto-rickshaw or other non-air-conditioned carriages through electronic commerce operators like Uber. A bench headed by Justice Manmohan dismissed the petitions of Uber India Systems Private Ltd and others challenging the 2021 central government notifications making fare in respect of a booking through the platform of an electronic commerce operator (ECO) for an auto-rickshaw ride or a bus ride exigible to tax. The court said ECOs form a class which is "distinct" from an individual service provider and the notifications, which take away an earlier exemption from tax levy, are in compliance with the object of the GST law to levy tax on every transaction of supply of goods and services. "The Petitioners have not disputed the aforesaid stated objective of the GST law that every transaction must be taxed. Therefore, the impugned Notifications, which seek to withdraw the exemption and tax the

Delhi HC dismisses pleas on levying GST on online booking of auto rides

The Delhi High Court has dismissed petitions challenging the notifications of the central govt's imposed Goods and Services Tax on online booking of autorickshaw rides via ride-sharing applications

Demonetisation, unscientific GST implementation caused disaster: Kerala CM

Kerala CM Pinarayi Vijayan while inaugurating 'Entrepreneurship 2.0, Mission 1000' claimed that demonetisation and "unscientific" implementation of GST caused a disaster for the country

Liquidated damages in certain cases to draw 18% GST, says AAR

The ruling was given in an application by Andhra Pradesh Development Company (APPDCL), a special-purpose vehicle set up to implement mega power projects in the state

Liquidated damages in certain cases to draw 18% GST, rules Andhra AAR

Such damages are the sum that one party receives when the other party fails to meet provisions of a contract

Interstate flow of goods rose to 70% of GDP post-GST implementation

Paper published by IPPR suggests new indirect tax regime led to increasing economic integration among states

Floor mats for four-wheelers to attract 28% GST, says Gujarat AAR

The applicant, a manufacturer, had argued that 18% GST should be applicable

SC rules on service tax on corporate guarantees, gives pvt firm relief

No service tax on corporate guarantees by parent company to subsidiaries in absence of consideration, it says

India's Goods and Services Tax mop-up crossed Rs 18 trillion in FY23

March collection was the second-highest ever