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Why Flipkart, Swiggy are under IT scanner. All you need to know
The Directorate General of GST Intelligence has reported some GST invasion in both their accounts. Both the companies have issued statement saying they have complied with all tax and legal mandates.
The Income Tax Department on Thursday conducted surveys at the headquarters of Instakart (a group company of Flipkart) and food ordering and delivery company Swiggy in Bengaluru in connection with an alleged bogus input tax credit, connected to an external vendor, ANI reported on Thursday.
Here is what happened:
> The Directorate General of GST Intelligence has reported some GST invasion in both their accounts and reported it to the income tax department.
> The DGCI is currently running a nationwide drive against GST evaders to minimise the misuse of the system.
> A Flipkart spokesperson confirmed the survey was conducted by the IT department and said that the company is ensuring full compliance. “The officials from the Income Tax Department have contacted us. We are providing them with all the required information and are extending our full co-operation. We believe we are in full compliance with all applicable tax and legal requirements,” the Flipkart spokesperson said.
> Swiggy also issued a statement in which it said the company is complying with the tax and legal mandates. “As a law-abiding company, we are in full compliance with the tax and legal mandates. The survey by the IT officials is currently underway and our team is extending full cooperation in the matter,” the statement read.
> Last week in an interview to ANI, Finance Secretary Ajay Bhushan Pandey had said that to minimise the misuse of the system, the government has kept a check on those persons who were claiming excess Input Tax Credit (ITC).
> The department has 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.
