Bogus GST invoices row: Prosecution starts against e-insurance intermediary

The Directorate General of GST Intelligence had in 2022 detected Rs 824-crore tax evasion by insurance companies

Goods and services tax (GST) authorities have initiated prosecution against a leading online insurance intermediary for allegedly generating bogus invoices of around Rs 100 crore in the name of marketing and sales service, Business Standard has learnt.

The intermediary, based in Bengaluru, got prosecution notice in January from the Directorate General of GST Intelligence (DGGI). 

Following this, the top management of the firm has been questioned.

“The intermediary has been asked to provide proof/evidence of the service (they claimed) against which invoices were raised. In the absence of proof, the owners could face rigorous punishment,” a source in the DGGI