Page 16 - Banking Finance December 2023

ROUNDUP

tutions and CICs."," stated RBI gover- than Rs 320 crore, India became the statement. It also added that cases
nor Shaktikanta Das, in response to most recent country to join the list of have been booked using data analysis
the rise in customer complaints re- businesses receiving tax notices. The supported by cutting-edge technical
garding credit information reporting consumer goods company has stated tools. The DGGI statement is being
and the operation of credit informa- that it will contest the charge before released concurrently with multiple
tion companies (CICs). the appropriate authorities. GST tax notices being sent to busi-
nesses.
The Goods and Services Tax (GST) au-
Centre permits Indian
thorities have been sending out show The GST authorities have been sending
companies to list directly cause/cum-demand notices to busi- out show cause-cum-demand notices
overseas. nesses in a variety of industries, includ- to businesses in a variety of industries,
ing fast-moving consumer goods, cars, including fast-moving consumer goods,
The government has made a major mattresses, and insurance. These no- cars, mattresses, insurance, and insur-
move by allowing Indian companies, ance companies, in the last few
subject to certain conditions, to list on tices are related to issues with "short
foreign exchanges. payment" of taxes, "wrongful months. These notices are related to
availment" of credit, and mismatches issues with "short payment" of taxes,
In this regard, the Corporate Affairs in the details of returns for the years "wrongful availment" of credit, and
Ministry has notified the applicable 2017-18. mismatching of details in returns from
section under the Companies Law. At 2017-18. Moreover, GST demand no-
the moment, American Depository Among the businesses that have re- tices have been sent to casinos and
Receipts (ADRs) and Global Depository cently received GST show cause notices online gaming companies.
Receipts (GDRs) are used for local are insurance companies like LIC, Bajaj
listed entities' overseas listings. Allianz, ICICI Prudential, ICICI Since June 2023, there has been a fo-
Lombard, Star Health, and Allied Insur- cus on locating and detaining the mas-
In a notification on October 30, the terminds and dismantling syndicates
ministry stated, "The Central Govern- ance, as well as other businesses like that are active throughout the nation.
ment hereby appoints the 30th day of Maruti Suzuki, Akzo Nobel, and Sheela
October 2023 as the date on which the Foam. This is on top of the notifications With the use of sophisticated technical
provisions of section 5 of the said Act that are being issued to different online tools and data analysis, cases have
shall come into force," exercising the casinos and gaming companies regard- been booked that resulted in the cap-
authority granted by sub-section (2) of ing purported GST underpayment. ture of masterminds. These master-
section 1 of the Companies (Amend- minds/syndicates preyed on the gull-
ment) Act, 2020 (29 of 2020). Up to now in FY23-24, ible, offering them jobs, commissions,
The guidelines for Indian companies to there has been 1.36 lakh bank loans, and other incentives in

list directly overseas have not yet been crore in GST evasion: exchange for the KYC documents nec-
essary to create shell companies and
announced.
DGGI other fraudulent enterprises without
Certain classes of public companies the individuals' knowledge. According
may list their securities on authorized In the current fiscal year, the Director- to the report, there have been in-
stock exchanges in foreign jurisdictions ate General of GST Intelligence (DGGI) stances where people were given small
that are acceptable or in other juris- has discovered 1.36 lakh crores of ru- financial benefits in exchange for their
dictions that may be designated by pees in tax evasion, involving the "vol- knowledge of the use of KYCs.
Section 5. untary payment" of Rs 14,108 crores.
After conducting an earlier anti-eva- Free ration scheme to be
FMCG, auto, and insurers sion drive, the investigation agency

bear the brunt of the under the Goods and Services Tax extended 5 more yrs: PM
growing number of GST (GST) regime has been working on Over 80 crore poor people will benefit
identifying "masterminds and syndi- from the free foodgrain program
notices. cates" operating across the nation known as the PM Garib Kalyan Ann

Dabur with a GST demand of more since June of this year, according to the Yojna (PMGKAY), which will be ex-

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