Page 9 - Banking Finance November 2019

GST UPDATE

GST

NEWS
NEWS
NEWS
NEWS
NEWS

1 arrested for Rs 35 crore Tax dept wants GST on logos, brand name

evasion by GST & Excise The indirect tax department wants some Indian conglomerates and foreign
banks to put a valuation on the brand names and logos,
dept charge fees from the subsidiary or group company and pay
A person for GST evasion of about Rs 35 18% goods and services tax (GST) on that, according to
crore has the sources. These entities came under scanner for allow-
been ar- ing subsidiaries or Indian entities to use brand names and
rested by logos they own for free.
the GST The conglomerates are said to include the Tata and Mahindra groups along with
and Central banks such as ICICI, HSBC and Citi. The tax department has sent written inquiry
Excise Department, Chennai Outer. The orders to some companies and issued preliminary notices to some foreign banks,
individual, along with accomplices, had said the source. The 18% GST levy would likely result in thousands of crores in
floated 36 shell companies and taken taxation for companies and banks, said experts. However, if the subsidiary is a
GST registration misusing KYC docu- manufacturing unit, the cost could be offset in some way, they said.
ments of others individuals allegedly for
the purpose of receiving and issuing tax GSTN, IHMCL to sign agreement to link FASTag with
invoices worth Rs 250 crore without
actual receipt or supply of goods. GST e-way bill system
This was done for the purpose of fraudu- Goods and Services Tax Network (GSTN) and Indian Highways Management
lent receipt and passing on of input tax Company Ltd (IHMCL) will sign pact recently for inte-
credit of about Rs 35 crore along the gration of FASTag with GST e-way bill system. The
supply chain. This helped several manu- agreement will be inked at the 'One Nation, One
facturers and service providers to evade FASTag' conference, which will be inaugurated by
GST evasion of an equivalent amount Road Transport and Highway Minister Nitin Gadkari.
which would have otherwise come to FASTag is a simple to use, reloadable tag which en-
the exchequer as tax revenue, accord- ables automatic deduction of toll charges and lets vehicle pass through toll plaza
ing to a statement. The arrest was without stopping for cash transaction. A MoU will be signed between IHMCL
made after carrying out detailed inves- and GSTN for integration of FASTag with GST eway bill system, an official state-
tigation and several searches to gather ment said. The GST Council has already accorded 'in-principle' approval for this
evidence. The person was arrested on integration. The integration of e-way bill system with FASTag will help revenue
September 27 and remanded in judicial authorities track the movement of vehicles and ensure that they are travelling
custody till October 9. Further investi- to the same destination that the transporter or the trader had specified while
gation is on. generating the e-way bill, the statement added.

BANKING FINANCE | NOVEMBER | 2019 | 9