The directorate general of GST Intelligence (DGGSTI) has registered yet another case of tax collected from the customers, but not passed on to the government. Following a raid on Mascot Motors, a two-wheeler agency, the taxmen have found a default of Rs 18.50 crore towards GST. Dues pending since March 2019 were not cleared. The tax component was recovered from customers during sale of vehicles but was not deposited to the government exchequer.
Mascot Motors has paid up Rs 16.70 crore after the raid, with the rest of the amount expected to be recovered soon. This is second such action against auto dealers in the last one year. In September 2019, the DGGSTI had pulled up five luxury car dealers for similar reasons. GST dues to the tune of Rs 25.04 crore were recovered after a raid at that time.