The Directorate General of GST Intelligence (DGGI) has issued show-cause notice to many insurance businesses, including HDFC Bank, Go Digit Insurance, and Policy bazaar, for creating false invoices in order to collect input tax credit without delivering any service.
According to the DGGI regional offices' show-cause letters, these businesses submitted fake bills for several insurance firms without rendering any services. Such conduct is illegal under GST legislation and is subject to penalties. In the past 15 days, DGGI representatives have sent summonses and notifications to these intermediaries. At least 120 insurance providers and agents from around the nation are being investigated
According to the GST regulations, in order to claim an input tax credit, a buyer must have received the goods or services and have an invoice for which GST has been paid, as stated in Rule of the CGST Act, 2017. Authorities said that these organizations had a deal in place to provide invalid input tax credits while passing off fake invoices for marketing services.
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