A Bengaluru passenger transport company has been caught for the non-payment of Goods and Services Tax (GST) of more than ₹20 crore and service taxes amounting to ₹1.9 crore.
Investigation by Central Tax officials of Bengaluru South GST Commissionerate detected evasion of tax payment by the company, which charged and collected applicable taxes from its customers but did not remit it to the exchequer, which is in violation of Finance Act, 1994.
While the evasion of GST was between August 2017 and March 2018, evasion of service tax was between April 2017 and June 2017, a press note said. It said that when the company was confronted with documentary evidence, it admitted to lapses following which service tax liability of ₹1.9 crore and GST liability of ₹19.5 crore has been recovered so far.
The release said that further investigation and recovery proceedings are under progress.