Tyre companies, suppliers under lens for GST violations

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Tyre suppliers and leading manufacturers – including JK Tyre, Apollo CEAT & MRF are under the scanner for possible misuse of provisions related to GST, with authorities also probing if there were instances of tax evasion.

Sources said authorities are examining multiple issues, which include non-payment of tax on amount recovered through debit notes, excess claim of ITC and transactions between plants and depots. There was no estimate of violations involved, although some of the suppliers are said to have admitted to a tax liability and made some initial payments. To avoid prosecution proceedings, suppliers have the option to pay tax with interest and 15% penalty under the CGST Act.

If a detailed probe reveals industry-wide malpractices, the government may review its plan to reduce the levy from the current 28%.

Read more at : https://timesofindia.indiatimes.com/business/india-business/tyre-companies-suppliers-under-lens-for-gst-violations/articleshow/67721364.cms