Insurers Caught Submitting Fake Bills to Evade GST..!! The Directorate General of GST Intelligence (DGGI) has found that some insurers have submitted fake bills to contest charges of wrongful input tax credit claims.

In one case, a major insurance firm tried to submit fake e-way bills raised by its vendors to claim the input tax credit.

The DGGI is also investigating allegations that some insurers have colluded with intermediaries to generate fake invoices The intermediaries would then charge the insurers a commission for the fake invoices. The insurers would then use these fake invoices to claim ITC.

The DGGI has so far issued demand notices to several insurers for a total of ₹824 crore. The probe began in 2022 after the DGGI received specific intelligence about GST evasion by insurers.

The probe into GST evasion by insurers is a major development. It is the first time that such widespread evasion has been detected in the insurance sector. The probe is likely to have a significant impact on the insurance industry.