The Directorate General of GST Intelligence (DGGI) discovered the insurance companies breaching GST rules. Anil Kumar Gupta Principal DG of DGGI, cited that these companies have not been paying GST on services furnished before the employees in SEZ (Special Economic Zone) units.
He cited that the same services does not get a GST exemption.
It was remarked by Gupta that certain insurance companies have been filing GST in specific matters, and others are not able to comply.
He cited that the same establishes the breach of GST norms.
Consequently, general insurance companies are suffering from total GST dues of nearly Rs 20,000 crore.
Post performing the detailed investigations the DGGI has issued the notices earlier to such companies.
It was marked by Gupta that the same problem is not counted under the clarifications issued recently for the insurance sector in the 53rd GST Council meeting.
Penalties are being faced by the insurance firms since they work to improve their tax compliance problems.
