GST ITC Fraud: Notice to Swiggy Operator for ITC Fraud Case

The Director General of GST Intelligence (DGGI), Hyderabad, has issued a show-cause notice to Bundl Technologies Private Limited (BTPL), which owns the food delivery service Swiggy, for alleged improper availment and utilisation of Rs 27.2 crore in input tax credit.

The DGGI also questioned why a penalty should not be imposed on the corporation, its directors, and its top finance executives.

BTPL, established in Bengaluru, delivers meals, beverages, groceries, and supplies from its own private kitchens, cloud kitchens, and other eateries. They are registered across the country, with 88 active GSTIN registrations as an ordinary taxpayer, e-commerce operator, and input service distributor.

The DGGI stated in the notice, “An amount of Rs 27.2 crore is illegally claimed as input tax credit by BTPL in several states without receipt of goods or services and in violation of the Act between August 2017 and October 2019.” Green Finch Team Management Private Ltd (GTMPL) invoices were used without any actual receipt of services, according to the company.

Investigations also revealed that GTMPL wrongfully claimed input tax credit on invoices issued by a number of fictitious and non-existent companies, including Orient Enterprises, Royal Enterprises, and Liya Trading Services, and used it to offset their output tax liability on invoices issued to BTPL.

“BTPL has availed and used input tax credit on input services commonly used for its online marketplace services (which attract 5% GST without input tax credit) as well as taxable services,” the DGGI explained. “However, it has not reversed the proportionate input tax credit corresponding to private and cloud kitchens.”

Source: LINK