Probe on insurers over, Income Tax department finds alleged tax evasion of Rs 15,000 cr ~ Reports The Economic Times #GSTInsightsByARR

The income tax department has completed its investigation into alleged malpractices in the payment of commissions by insurance companies and uncovered evasion of more than ₹15,000 crore. The tax on this will be about ₹4,500 crore, they said.

Apart from the IT department, the insurers were also investigated by the Directorate General of GST Intelligence (DGGI).

While the DGGI was probing them for fake input tax credit (ITC) claims, the tax department was investigating alleged tax evasion in violation of Insurance Regulatory and Development Authority of India (IRDAI) norms.

Since March, the DGGI has sent show-cause notices to 30 firms seeking GST payments of over Rs 4,000 crore.

Sources added that these firms have paid around Rs 700 crore so far to the GST authorities and are in the process of approaching the adjudicating authority against the DGGI's action.