Widening its probe in the bogus invoicing case against insurance intermediaries and aggregators, the Goods and Services Tax (GST) authorities issued summons to several of them seeking extensive information.
The information sought includes their agreement and contract with insurance companies, total input tax credit passed to them since 2018-19, along with supporting documents proving rendering of services. The summons were issued in connection with the Directorate General of GST intelligence (DGGI) probe launched in 2022 against at least 16 insurance companies for allegedly availing input tax credit in a fraudulent manner.
These intermediaries allegedly generated bogus invoices in the guise of marketing and sales in collusion with insurance companies. “The summons have been issued under section 70 of the Central GST Act to some of the intermediaries,” a source said.
“Some of them provided partial information, but in many cases they failed to prove the services rendered against which invoices were raised,” the source added. The GST authorities recently launched prosecution proceedings against a listed e-intermediary. “The matter is still ongoing and the company concerned sought some time to furnish details,” the source said.
