Big Fraud!! Rs.2,250 crore tax evasion by HDFC Bank, Policybazaar, Go Digit and other companies

- Advertisement -

The Directorate General of GST Intelligence (DGGI) has initiated action against several insurance companies, including HDFC Bank, Go Digit Insurance, and Policybazaar, for allegedly issuing fake invoices to claim input tax credit without providing any services. DGGI officials have sent show-cause notices and summons to at least 120 insurance intermediaries and aggregators across the country in the last 15 days, after a year-long investigation revealed evasion of Rs 2,250 crore through fraudulent invoices raised from 2018 to March 2022.

According to an official from DGGI, the investigation has uncovered that insurance companies obtained input tax credit without receiving actual goods or services, relying on fraudulent invoices provided by insurance intermediaries. Notices have been sent in response to this finding. As per the GST law, a buyer must have an invoice on which GST has been paid, and must have received the goods or services to avail input tax credit, as per Rule 16 of the CGST Act, 2017.

Furthermore, officials disclosed that these entities had devised schemes to transfer ineligible input tax credit by disguising them as marketing services, and they had generated fraudulent invoices as a means to evade taxes. In a separate case, tax authorities have also sent notices and summons to insurance companies, and in some cases, recovery of tax has been made. According to officials, a total of Rs 700 crore has been collected as pre-deposit from these companies, and summons have been issued to 12 insurance companies by DGGI.

- Advertisement -

Previously, the DGGI had issued notices to approximately 10-12 mutual fund houses, requesting information regarding their past transactions. In February, the DGGI accused these mutual funds of improperly claiming input tax credit in order to reduce their GST liability, by recording specific expenses in 2017-18 in a way that did not align with the accounting practices mandated for expenses capped at 2.25 percent of assets under management (AUM) by Asset Management Companies.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Video: Federal Bank launches its new ‘Rishta Anthem’

Video: Federal Bank launches its new 'Rishta Anthem'

Indian Money in Swiss Banks decreases by 70%, Check how much money is still in Swiss Banks

Indian Money in Swiss Banks decreases by 70%, Check how much money is still in Swiss Banks

Gang Arrested for Rs.120 Crore Fraud from AKTU Bank Account

Gang Arrested for Rs.120 Crore Fraud from AKTU Bank Account

Rs.20,000 crore Bank Fraud, ED starts investigation

Rs.20,000 crore Bank Fraud, ED conducts Raids

Case Registered for Threatening Bank MD in Almora

Case Registered for Threatening Bank MD in Almora

ICICI Bank Manager Absconds After Duping Customers of Rs 80 Lakh

ICICI Bank Manager Absconds After Duping Customers of Rs 80 Lakh

DFS held review meeting of Gramin Banks, Check meeting highlights

DFS held review meeting on performance and upgradation of RRBs, Check meeting highlights

Case of Illegal Withdrawal of Money from Union Bank of India Branch

Case of Illegal Withdrawal of Money from Union Bank of India Branch

Bank of Baroda Employee Found Dead after Fainting on Road

Bank of Baroda Employee Found Dead Under Suspicious Circumstances

Bank of Maharashtra Fraud: Customer submitted fake property documents for Loan

Bank of Maharashtra Fraud: Customer submitted fake property documents for Loan

Latest News