IT Dept. conducts surveys at Flipkart, Swiggy head offices in alleged bogus Input Tax Credit case
The Income Tax Department (IT Dept.) conducted surveys at Instakart, that is a group company of Flipkart, Swiggy Head
By : Legal Era
Update: 2021-01-09 15:07 GMT
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IT Dept. conducts surveys at Flipkart, Swiggy head offices in alleged bogus Input Tax Credit case The Income Tax Department (IT Dept.) conducted surveys at Instakart, that is a group company of Flipkart, Swiggy Head Offices (HO) for seeking information of alleged bogus input tax credit (ITC) connected to an external vendor The Directorate General of Goods and Service Tax Intelligence...
IT Dept. conducts surveys at Flipkart, Swiggy head offices in alleged bogus Input Tax Credit case
The Income Tax Department (IT Dept.) conducted surveys at Instakart, that is a group company of Flipkart, Swiggy Head Offices (HO) for seeking information of alleged bogus input tax credit (ITC) connected to an external vendor
The Directorate General of Goods and Service Tax Intelligence (DGGI) surveyed on the input tax credit (ITC) done to minimize the misuse of the system. The DGGI has found in the survey that Goods and Services Tax (GST) invasion has been done and it also referred the case to income tax to verify the income tax evasion.
The Flipkart spokesperson stated, "The officials from the Income Tax Department have contacted us. We are providing them with all the required information and are extending our full co-operation. We believe we are in full compliance with all applicable tax and legal requirements".
The spokesperson further said, "Flipkart employs more than two lakh people. It helps bring three lakh Micro Small and Medium Enterprises (MSMEs) and over six lakh, artisans/weavers, to market using technology." Mr. Ajay Bhushan Pandey who is the Finance Secretary stated that to minimize the misuse of the GST system, the government of India has kept a check on the persons who were claiming excess Input Tax Credit (ITC).
The finance secretary stated, "We have centralized the data from different agencies and analyzed it through artificial intelligence. We got to know that there are several people who are showing income of a few lakhs in their income tax returns but in GST they are showing turnovers in crores."
The Finance Secretary further said that the Income Tax department is also getting information regarding corrupt persons who are importing very expensive itemshowever they are not reflecting the same in their GST or income tax returns and hence they are manipulating their income in the wrong way.
The Income Tax Department is acting and planning to take strict actions on such tax evaders based on specific data-based information with a target related approach.