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Massive Allegations of GST Evasion: Shipping Liners Accused of ₹1.2-₹1.5 Lakh Crore Tax Evasion In a notable crackdown on GST evasion, the Directorate General of GST Intelligence (DGGI) in Ahmedabad has made staggering allegations of tax evasion amounting to ₹1.2 to ₹1.5 lakh crore against shippi
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FAQ :
The Directorate General of GST Intelligence (DGGI) has alleged tax evasion amounting to ₹1.2 to ₹1.5 lakh crore against shipping liners.
The allegations have been made by the Directorate General of GST Intelligence (DGGI) in Ahmedabad.
Shipping liners are accused of evading GST by operating through a branch office in India while failing to pay taxes on imported services from their overseas head offices, and by channelling operational expenses abroad without billing the Indian branch.
Under GST law, a business entity operating both in India and abroad is treated as separate legal entities. Any service provided by the head office to the branch office is considered a supply, even if there is no financial transaction, and import of services is taxable regardless of consideration.
Experts suggest that the recent CBIC circular issued in July 2023 may not offer relief, particularly in cases where exempted services have been provided.
The shipping liners have presented a representation to authorities like the Finance Ministry and CBIC, actively seeking a resolution to the allegations.
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