DGGI
GST simplified compliance, improved tax buoyancy; fake ITC generation still a challenge
Introduced seven years ago, the Goods and Services Tax (GST) has streamlined compliance and boosted tax revenues, but challenges persist with fake invoices and fraudulent registrations causing tax evasion concerns. Despite this, GST has simplified the tax regime, increased taxpayer numbers, and improved tax buoyancy and state revenues. However, efforts to combat evasion are ongoing, with the need for further measures such as operationalizing the GST appellate tribunal.
Online gaming companies get summons for cashback to players since October
The agency detected reimbursements of taxed money back to players as cashback in a separate promo account by online gaming companies post implementation of the 28% GST (goods and services tax) on the full entry level betting amount. The DGGI Gurgaon has sent summons for a period between October 2023 and June 15, 2024, ET has learnt.
Retro tax demand on online gaming companies may be quashed
As per the recommendation tax notices in cases where the lower tax was paid due to interpretation of law or lack of clarity can be quashed, people familiar with the development said. The law committee has suggested amendment to the Central Goods and Services Tax (CGST) Act, 2017 via the introduction of a new Section 11A in the legislation.
IATA boss warns foreign airlines may quit India if taxation issues are not sorted
The chief of the International Air Transport Association (IATA), Wille Walsh, warned that airlines may withdraw from the Indian market if concerns over taxation are not addressed. Several global airline groups including Emirates, British Airways, Lufthansa, Singapore Airlines, and others have received tax evasion notices from the Directorate General of GST Intelligence (DGGI). The notices were related to non-payment of tax on services provided by the airlines to their Indian entities.
DGGI launches probe into 'tax evasion' worth Rs 18k cr by agricultural brokerage houses
During a sector-wise analysis of GST data, the DGGI detected evasion by 58 brokerages, engaged in procurement of crops from farmers for businesses and government agencies, and in processing and packaging for exports, said officials. Some of these brokerages were not even registered under GST, despite huge turnover, and action could be initiated against more such entities, they said.
Patanjali Group companies face GST heat, receives show-cause notices
Patanjali Foods has received a show cause notice from the Directorate General of GST Intelligence, Chandigarh, for allegedly claiming Rs. 27.5 crore in undue input tax credit. The company has vowed to defend its position and comply with the law, stating that the financial implications are yet to be determined.
Tax evasion of Rs 730 cr by TMT bar makers detected
All iron and steel items are subject to 18% GST. The Meerut unit of DGGI had received intelligence that several TMT bar makers were filing documents on behalf of non-existent companies naming them as suppliers and claiming input tax credit. The official quoted above said these companies outsourced the transportation of non-duty paid goods from the factory gate to many dealers and recipients, without paying any duty to the authorities.
CBIC issues SOP for officials to prevent taxpayer harassment
The Central Board of Indirect Tax and Customs (CBIC) has approved a detailed standard operating procedure (SOP) for officials of the Directorate General of GST Intelligence (DGGI) to improve the ease of doing business and prevent harassment of taxpayers during tax investigations, summons, and searches.
Coaching centres face DGGI probe for tax evasion
DGGI is probing potential tax evasion of ₹850 crore by large coaching centres in 2020-21 and 2021-22. Officials suggest misdeclaration of enrolments and non-payment of tax after collection. The investigation, initiated in January 2023, targets numerous coaching centres across India. Around 145 large and mid-sized centres are under scrutiny, including those for medical, engineering, and entrance exams like IELTS and GRE.
Tax investigation: Detailed SOP in works for DGGI officials
The Central Board of Indirect tax and Customs is considering a directive to address concerns raised by multinational companies during tax investigations conducted by DGGI officials. The directive aims to improve ease of doing business and has received feedback from the finance ministry.
DGGI cautioned taxpayers about fake summons
The Central Board of Indirect Taxes and Customs (CBIC) has issued a cautionary advisory to taxpayers regarding fake summons sent by fraudsters. Taxpayers are urged to verify the authenticity of any summons received by checking the official CBIC website and reporting suspicious notices to the jurisdiction office immediately. This advisory comes after the Directorate General of GST Intelligence (DGGI) observed instances of individuals sending fake summons to taxpayers, intending to commit fraud.
DGGI probing Mahadev Online Book for possible non-payment of GST
The Directorate General of GST Intelligence (DGGI) is investigating Mahadev Online Book, an allegedly illegal betting application, and its promoters for suspected violation of GST rules and non-payment of tax. The DGGI suspects the GST dues to be around Rs 30,000 crore and alleges that Mahadev Book and its subsidiaries operated illegally without GST registration. The app is already under scrutiny for money laundering, illegal betting, and match-fixing by the Enforcement Directorate and police in multiple cities.
DGGI busts 1,700 fake ITC cases worth Rs. 18,000 crore in Apr-Dec, arrests 98
DGGI has busted 1,700 fake Input Tax Credit (ITC) cases worth Rs 18,000 crore and arrested 98 people. Using data analysis and advanced tools, DGGI apprehended tax evaders involved in creating fake firms and companies. In one case, a firm in Haryana generated E-way bills and created Rs. 1,100 crore fraudulent ITC.
Directorate General of GST Intelligence to have 1st digital forensic lab in Gujarat
The Directorate General of GST Intelligence (DGGI) has established its first digital forensic lab in Ahmedabad, aimed at enhancing the detection of tax evasion and improving recovery efforts with digital evidence. The lab is equipped with advanced data handling and retrieval tools, as well as the latest data analytics technology to prevent and combat complex financial crimes. Four additional labs are planned in New Delhi, Kolkata, Mumbai, and Chennai, with labs in Delhi and Chennai expected to commence operations before March.
DGGI has no special power over state GST officials: Jharkhand HC
"Prior to any determination or finding of any irregular or inadmissible availment of input tax credit, attachment of bank account of the petitioner appears to be an 'arm twisting method' to make the petitioner succumb to the particular authority, which cannot be the dictum of the Act," the court said in a ruling on January 15.
GST intelligence unit detected over Rs 1.98 lakh crore worth tax evasion cases in 2023
"DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs 1,98,324 crore with a voluntary payment of Rs 28,362 crore. 140 masterminds involved in GST evasion were arrested," the ministry said in a statement.
Delta Corp says Rs 23,200 crore-GST demand arbitrary
Delta Corp, an online gaming and casino firm, contested a GST demand of over Rs 23,200 crore, deeming it arbitrary and contrary to laws, hence not provisioning for it. Their Q3FY24 reported a 59% decrease in net profit at Rs 34.48 crore, with a reduced income from operations at Rs 181.54 crore. Show cause notices from tax authorities alleging GST short payments led to legal action by Delta Corp and its subsidiaries, securing stay orders from High Courts.
In a first, over 10 foreign airlines questioned by DGGI over alleged tax evasion charges
The DGGI has questioned executives of at least ten prominent foreign airlines, including British Airways, Etihad, Thai Airways, and Qatar Airways, over allegations of tax evasion involving hundreds of crores of rupees. The DGGI has requested documentation covering all expenses incurred by these airlines for their operations in India, including aircraft leasing, crew and ground staff costs, fuel for the aircraft, and any additional maintenance or repair expenses.
Offshore real money gaming apps lure users with 'No GST' carrot
India-based real money gaming (RMG) applications are challenging a tax demand of over ₹1.5 lakh crore from the Directorate General of GST Intelligence (DGGI). Meanwhile, offshore RMG apps are actively advertising that they do not attract GST, taking advantage of the 28% GST imposed on RMG apps in India from October 1.
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