The Directorate General of Goods Services Tax Intelligence (DGGI) has issued notices to around a dozen large bakeries and chocolatiers across India for underpayment of tax for the July 2017-March 2023 period, said people familiar with the development.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has issued thousands of notices to various companies, as well as their directors and promoters, regarding the wrongful availment of input tax credit (ITC), according to sources. This tax dispute primarily concerns the failure of the vendors to remit taxes to the government, in addition to other issues related to credit availment and utilisation.
“All seven institutions were issued show-cause notices in early August for non-payment of GST on grants received by them from government and non-government bodies for conducting research,” sources revealed.
DGGI issued a show-cause notice early this month to the Kerala branch of Indian Medical Association (IMA) saying that it was using shell companies to stash its profits from commercial activities and, thereby, preserve its status as a charitable organisation.
The company charges ‘upfront interest’ from those who avail loans to purchase store items, which the DGGI states is a taxable ‘processing fee or service charge’, as per the report.
