Home / News / India /  15 insurance companies evade GST to the tune of 824 crore

A 824 crore tax evasion by 15 insurance companies, intermediaries and banks through issuance of fake invoices has been detected by GST officials. 

Acting on specific inputs, GST Intelligence Officers in Mumbai searched the premises of a number of corporates -- insurance companies, intermediary marketing/branding companies, NBFCs and banks, in multiple cities. And during the investigations, many cases of availment and utilisation of ineligible input tax credit (ITC) without underlying supply of goods or services were detected. 

The officials noted that a total of 15 insurance companies, intermediaries, marketing companies, NBFCs and banks were allegedly following this modus operandi to evade GST. 

“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, they added.

So far, GST evasion to the tune of 824 crore has been unearthed. Various insurance companies which have availed and utilised the ineligible ITC have voluntarily paid a total amount of 217 crore in cash, officials said, adding further investigations are in progress.

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