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. Key Points
Economic TimesBJP leader Shahnawaz Hussain suffers cardiac arrest; admitted to Mumbai's Lilavati Hospital
Shahnawaz Hussain was admitted to Mumbai's Lilavati Hospital after a complaint of high blood pressure earlier today. The ECG and 2D Eco reports showed he suffered a minor heart attack. Key Points
Economic TimesDGGI drops ₹3,000 crore tax demand on 18 foreign shipping firms for FY18
The Directorate General of Goods and Services Tax Intelligence (DGGI) dropped a ₹3,000 crore tax demand for 2017-18 against 18 foreign shipping companies, following their joint declaration of no service imports in that year. However, the tax demand for subsequent years remains pending, with ongoing investigations and further decisions awaited from the GST Council. Key Points
Economic TimesICICI Prudential gets notice for alleged GST liability of Rs 492 crore
In a notice to stock exchanges, ICICI Prudential said it has received show-cause-cum-demand notice of ₹492 crore for July 2017 to July 2022 period from DGGI. The company said it will take appropriate steps in due course to respond to the notice and contest the matter. Key Points
Economic TimesDGGI 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. Key Points
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Inter-dept panel may be set up to ensure compliance by online gaming platforms
An inter-departmental committee may be formed to regulate online gaming platforms and ensure compliance, according to a DGGI report. The GST intelligence wing has taken action against 118 domestic entities and issued notices involving Rs 1,10,531.91 crore. Offshore entities are also under investigation for non-compliance. Key Points
Economic TimesRaymond, Godrej FMCG deal under DGGI's scanner
The DGGI is also understood to have sought an explanation from GCPL on the matter. The sources cited added that DGGI's Mumbai unit also conducted an inspection on premises linked to Raymond as part of its investigation. Section 67 of the CGST empowers an official to conduct an inspection if he has reason to believe that a person concerned has suppressed information to evade tax. Key Points
Economic TimesGaming apps converting earnings to crypto, Rs 700 crore moved out of India, reveals GST probe
Parimatch, a Cyprus-based group, sits at the centre of the largest such network under investigation, which even advertises during local sports leagues on TV. The Directorate General of Goods & Services Tax Intelligence has recently dismantled one such network linked to Parimatch, the majority of which use multi-jurisdictional communications and transactions to avoid legal action. Key Points
Economic TimesProbe on insurers over, Income Tax department finds alleged tax evasion of Rs 15,000 cr
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. Key Points
Economic TimesTax 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. Key Points
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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. Key Points
Economic TimesDGGI 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. Key Points
Economic TimesHero MotoCorp faces tax probe over links to vendor
India's Directorate General of Goods and Services Tax Intelligence is investigating motorcycle manufacturer Hero MotoCorp over its connection with vendor Salt Experiences, suspected of false expenditure reporting of around Rs 900 million ($10.87m). The investigation coincides with a separate exercise by Indias Directorate of Enforcement, which searched 12 premises operated by Hero MotoCorp and founding shareholder Pawan Kant Munjal, seizing $3m in assets. Key Points
Economic TimesDGGI 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. Key Points
Economic TimesTax evasion probe into insurers to end by Nov
ET was first to report on September 29, 2022, about investigations into potential GST input tax credit violations by insurers, and on January 24, about similar probes by the Income Tax Department. HDFC Life on June 23 said it had received a show cause notice from DGGI demanding `942 crore tax for the July 2017 to FY22 period. Key Points
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