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GST officers have started sending notices to over a dozen insurance companies for availing input tax credit on the basis of bogus invoices in the last six years,sources said. These insurers have availed input tax credit (ITC) on the basis of invoices issued by intermediaries for providing services like advertising and marketing, although no such services were actually provided. As per the GST law, such availment of the ITC is not permissible as the supply of said service did not actual
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FAQ :
GST officers are issuing notices to insurance companies for wrongly availing input tax credit (ITC) based on fake or bogus invoices.
The invoices were for services such as advertising and marketing, allegedly provided by intermediaries.
No, under GST law, availing ITC when the supply of services did not actually take place is not permissible.
Investigations by the Directorate General of GST Intelligence revealed that 16 insurance companies availed ITC of Rs 824 crore.
Yes, out of the Rs 824 crore, the insurers have voluntarily paid back Rs 217 crore.
Investigations suggest that insurers were paying commissions beyond regulatory limits to corporate agents, disguised as expenses for marketing and brand activation.
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