The Directorate General of GST Intelligence (DGGI), Amritsar regional unit, has issued a show-cause notice of ₹184 crore to M/s Samsung Display Noida Private Limited, Noida, in connection with alleged wrongful availment and utilisation of blocked Input Tax Credit (ITC) under the Central Goods and Services Tax Act, 2017.
The DGGI issued notice on May 12 after a year-long investigation, which was initiated on the basis of specific intelligence received from an informer indicating that the company had availed Input Tax Credit (ITC) in contravention of the CGST Act, 2017. The Act restricts the availment of ITC in respect of works contract services and the construction of immovable property other than plant and machinery.
An official privy to development said that during scrutiny of GST returns and related records, it was found that two construction entities, namely M/s Samsung C&T India Private Limited and M/s Samsung E&A India Private Limited, had passed on ITC to the M/s Samsung Display Noida Private Limited, which was blocked. “Examination of invoices revealed that the services had been classified under Construction Services of Industrial Buildings,” said the official, who didn’t wish to be named.
The invoices are primarily related to civil construction, structural work, architectural work, landscaping, electrical work, plumbing, heating, ventilation, and air conditioning (HVAC) systems, fire-fighting systems, building construction and waste-water treatment facilities.
{{/usCountry}}The invoices are primarily related to civil construction, structural work, architectural work, landscaping, electrical work, plumbing, heating, ventilation, and air conditioning (HVAC) systems, fire-fighting systems, building construction and waste-water treatment facilities.
{{/usCountry}}During the course of investigation, officers of DGGI also recorded statements of various company officials, including taxation managers, the chief financial officer and former finance officials.
The investigation further revealed that the company had allegedly availed and utilised approximately ₹184 crore out of the total ITC passed on by the two Samsung group construction companies.
Accordingly, a show-cause notice under Section 74 of the CGST Act, 2017, has been issued proposing recovery of the inadmissible ITC along with applicable interest and penalty.
“During investigation, M/s Samsung Display Noida Private Limited deposited an amount of ₹18.5 crore and has also filed an appeal with appellate authorities”, the official added. The firm officials couldn’t be contacted for comments.