According to a report, 15 insurance companies, including HDFC Life Insurance, Bajaj Allianz, and Aditya Birla Sun Life Insurance, have been found to evade Rs 2,350 crore of goods and services tax (GST). The investigation by GST authorities focused on detecting fake input tax credit claims that lacked the underlying supply of goods and services. The list of companies investigated includes both life and general insurance providers, as well as some public sector insurers.
The investigation on these 15 insurance companies has been completed, and show-cause notices are currently being issued to them. As a result of the investigation, tax evasion worth Rs 2,350 crore has been detected, and Rs 700 crore has been recovered so far.
In addition to the insurance companies, the GST authorities are also conducting investigations into online gaming companies for GST evasion. About 5-6 online gaming companies are currently under investigation, though the amount of evasion has not been quantified yet.
To combat GST evasion and fake billing, the Indian government has taken measures like detecting and initiating actions against fake registrations. Around 11,140 such registrations have been identified and dealt with. The Finance Ministry is also employing methods like OTP-based verification of Aadhar and piloting biometric-based Aadhar authentication during registration in high-risk cases to address the issue.
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