The Directorate General of GST Intelligence ( DGGI ) is working to recover around Rs. 230 to 250 crore in unpaid Goods and Services Tax ( GST ) from the US based subsidiaries of Byju’s, India’s well-known edtech company. The tax authorities claim these unpaid taxes are linked to transactions between the US subsidiaries and Indian entities that were not reported properly, raising concerns about tax evasion.
According to Financial Express, these transactions were allegedly kept “off the books” to avoid paying GST. Initially, the DGGI tried to file a claim for the taxes during Byju’s ongoing insolvency proceedings but the resolution professional rejected it due to delays in submission. Now, the DGGI is considering filing a separate petition with the National Company Law Tribunal (NCLT) to recover the dues.
This tax issue is one of many challenges Byju’s is currently facing. The company is already undergoing insolvency proceedings with creditors claiming Rs. 11,432 crore in unpaid debts. It is also involved in legal disputes including a case with the Board of Control for Cricket in India (BCCI) over Rs. 158 crore in unpaid dues.
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BCCI initially filed a case against Byju but it later decided to withdraw the case after Byju paid the money. This settlement was challenged by another party, GLAS Trust Company LLC, which claimed the payment violated a U.S. court order related to Byju’s U.S. based subsidiary.
The National Company Law Appellate Tribunal (NCLAT) allowed the withdrawal of the case but the Supreme Court involved and set aside the NCLAT ruling. The Court said the proper legal process for withdrawing the case was not followed and ordered that the Rs. 158 crore paid by Byju to BCCI be placed in an escrow account managed by the Committee of Creditors (CoC) until the insolvency process is complete.
Byju has also faced criticism for its lack of transparency and governance. Reports suggest that the company’s financial troubles are linked to poor compliance practices and alleged irregularities which have made investors and creditors confused.
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Despite these problems, experts believe that Byju’s still has a chance to recover. The company could work with tax authorities to resolve its GST issues through a settlement or payment plan. Strengthening its internal governance and being transparent about its finances could also help rebuild trust among stakeholders.
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