GST Department Conducts Raid On PB Fintech’s Subsidiary

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SUMMARY

PB Fintech said the GST department raided one of its subsidiaries on Sunday but did not mention if the action was taken against Policybazaar or Paisabazaar

The insurtech major said the the DGGI Gurugram conducted a search and enquired about some of its vendors

In 2023, the DGGI had sent notices to scores of insurance players, including Policybazaar, Go Digit, among others, for alleged GST evasion to the tune of INR 2,250 Cr 

The Goods and Services Tax (GST) department conducted a raid on a wholly-owned subsidiary of insurtech major PB Fintech on Sunday (December 13).

In an exchange filing, the company said the Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI) conducted a search and inquiry in connection with some of the vendors of one of its subsidiaries. However, it did not mention if the action was taken against PolicyBazaar or Paisabazaar.

The DGGI is yet to release an official statement on the matter.

In 2023, the DGGI had sent notices to scores of insurance players, including Policybazaar, Go Digit, and HDFC Bank among others, for alleged GST evasion to the tune of INR 2,250 Cr

The notices reportedly alleged that these companies issued fake invoices for many insurance companies between 2018 and March 2022, without providing any service, which is a punishable offence under GST norms.

However, Inc42 couldn’t independently verify if the current DGGI probe is related to these notices.

Even Paisabazaar came under the scanner of Income Tax authorities last year for alleged regulatory lapses and non-compliance with know your customer (KYC) norms.

Shares of PB Fintech were trading 1.84% higher at INR 1,729 apiece on the BSE at 10:43 AM.

The insurtech major informed the bourses today (January 14) that it was cooperating with the investigation and provided all information required by GST officials. The company said it does not expect the GST action to affect its operations.

This comes at a time when GST officials are tightening their noose on rampant tax evasion across the country. Last week, Inc42 exclusively reported that the DGGI raided insurance tech major InsurDekho’s headquarters in Gurugram for alleged tax evasion.

Online gaming companies, including Gameskraft, Dream11, and Games 24×7, were issued 71 show-cause notices for alleged evasion of GST amounting to INR 1.12 Lakh Cr during 2022-23 and the first seven months of 2023-24.

However, the Supreme Court stayed the GST proceedings against 49 real gaming startups last week, giving them interim relief.

 

 

 





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GST Department Conducts Raid On PB Fintech’s Subsidiary


SUMMARY

PB Fintech said the GST department raided one of its subsidiaries on Sunday but did not mention if the action was taken against Policybazaar or Paisabazaar

The insurtech major said the the DGGI Gurugram conducted a search and enquired about some of its vendors

In 2023, the DGGI had sent notices to scores of insurance players, including Policybazaar, Go Digit, among others, for alleged GST evasion to the tune of INR 2,250 Cr 

The Goods and Services Tax (GST) department conducted a raid on a wholly-owned subsidiary of insurtech major PB Fintech on Sunday (December 13).

In an exchange filing, the company said the Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI) conducted a search and inquiry in connection with some of the vendors of one of its subsidiaries. However, it did not mention if the action was taken against PolicyBazaar or Paisabazaar.

The DGGI is yet to release an official statement on the matter.

In 2023, the DGGI had sent notices to scores of insurance players, including Policybazaar, Go Digit, and HDFC Bank among others, for alleged GST evasion to the tune of INR 2,250 Cr

The notices reportedly alleged that these companies issued fake invoices for many insurance companies between 2018 and March 2022, without providing any service, which is a punishable offence under GST norms.

However, Inc42 couldn’t independently verify if the current DGGI probe is related to these notices.

Even Paisabazaar came under the scanner of Income Tax authorities last year for alleged regulatory lapses and non-compliance with know your customer (KYC) norms.

Shares of PB Fintech were trading 1.84% higher at INR 1,729 apiece on the BSE at 10:43 AM.

The insurtech major informed the bourses today (January 14) that it was cooperating with the investigation and provided all information required by GST officials. The company said it does not expect the GST action to affect its operations.

This comes at a time when GST officials are tightening their noose on rampant tax evasion across the country. Last week, Inc42 exclusively reported that the DGGI raided insurance tech major InsurDekho’s headquarters in Gurugram for alleged tax evasion.

Online gaming companies, including Gameskraft, Dream11, and Games 24×7, were issued 71 show-cause notices for alleged evasion of GST amounting to INR 1.12 Lakh Cr during 2022-23 and the first seven months of 2023-24.

However, the Supreme Court stayed the GST proceedings against 49 real gaming startups last week, giving them interim relief.

 

 

 





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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