The Income Tax Department conducted the survey at Instakart, which is a group company of Flipkart, Swiggy Head Offices in connection with alleged bogus Input Tax Credit (ITC) in connection with information of alleged bogus input tax credit (ITC) connected to an external vendor.
The survey was conducted on the input provided by the Directorate General of GST Intelligence (DGGI) who is currently running a nationwide drive against GST evaders to minimize the misuse of the system.
The DGGI has found GST invasion and referred the case to income tax to check the income tax evasion.
The Flipkart spokesperson said, “the officials from the Income Tax Department have contacted us. We are providing them with all the required information and are extending our full cooperation. We believe we are in full compliance with all applicable tax and legal requirements”.
“Flipkart employs more than two lakh people. It helps bring three lakh Micro Small and Medium Enterprises (MSMEs) and over six lakh, artisans/weavers, to market using technology,” he added.
The Finance Secretary Ajay Bhushan Pandey had said that to minimize the misuse of the system, the government has kept a check on those persons who were claiming excess Input Tax Credit (ITC).
“We have centralised the data from different agencies and analysed it through artificial intelligence. We got to know that there are a number of people who are showing income of a few lakhs in their income tax returns but in GST they are showing turnovers in crores,” Pandey had said.
Mr. Pandey further added that the department is also getting information that some unscrupulous persons are importing items worth crores of rupees but they are not reflected in their GST or income tax returns. Now, the department is acting on these tax evaders on specific data-based information with a targeted approach.
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