News & Media 4th Jun 2024
The Directorate General of GST Intelligence (DGGI) is set to intensify the scrutiny of suspected tax evasion by pharmaceutical companies, over non-payment of dues. In addition to the notices sent , the DGGI is likely to ask many more companies to explain what it perceives as under-payment of tax by them in the current year. The notices could pertain to non-payment of GST on brand transfer sales, claiming fake input tax credit (ITC) on expired drugs and for business support services, and non-payment under the reverse charge mechanism.
Financial Express’s Priyansh Verma writes on “GST probe wing set to widen scrutiny of pharma companies” with insights from our Partner Jignesh Ghelani.