Flipkart’s Instakart used fake invoices to avail GST credit: Report

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Instakart Services, a unit of Flipkart, allegedly used fake Goods and Services Tax (GST) invoices to avail input tax credit (ITC) worth Rs 21 crore since July 2017. GST Intelligence found that fake invoices were issued by two vendors engaged in “manpower supply”, Financial Express reported.

A spokesperson for Instakart denied the allegations of the company availing credit through fake invoices. “The investigation by the GST Intelligence wing concerns the non-payment of GST by two vendors. We are merely cooperating with the authorities to help with their findings to trace and track any wrongdoings by such vendors,” the spokesperson told the paper.

“We have paid each and every invoice of these vendors through banking channels and all documentary evidence has already been submitted to the department. The investigation is not to be misconstrued as being related to any wrongdoing by us any such allegation is vehemently denied by us,” the spokesperson said.

The Directorate General of GST Intelligence (DGGI) was investigating a separate case and found the accused supplied the fake invoices to two vendors contracted by Instakart. The DGGI found that these two firms didn’t exist at their given addresses, and then issued summons to Instakart over their dealings with these vendors.

The Instakart spokesperson told Financial Express that transactions with the vendors was based on valid GST registration certificates. Instakart has filed a writ petition in the Delhi High Court in relation to this matter, the report said. The spokesperson said it will support regulators in the investigation.

Source from: https://www.moneycontrol.com/news/business/flipkarts-instakart-used-fake-invoices-to-avail-gst-credit-report-6266831.html