The Mumbai unit of Directorate General of GST Intelligence (DGGI) is investigating 15 insurance companies, including ICICI Prudential Life Insurance, multiple banks, NBFCs and intermediary marketing companies for wrongful availment and utilisation of Rs 824 crore input tax credit (ITC), sources said.
The investigations revealed that these entities had formed an arrangement to pass on ineligible ITC in the guise of marketing services and fraudulent invoices were raised by following a systematic modus in connivance with each other.
After investigations revealed that ICICI Prudential Life Insurance had availed and utilised ineligible ITC without underlaying supply of goods/services, it has voluntarily paid Rs 100 crore, sources said.
Total GST recovery has been Rs 217 crore from all these cases.
The officers of DGGI Mumbai visited the premises of a number of insurance companies, intermediary marketing/branding companies, NBFCs and banks in multiple cities to investigate the matter.
As a result, similar cases of availment and utilisation of ineligible ITC without receipt of underlying supply of goods or services were detected.
It appeared that the modus was systematically planned and executed mainly at the behest of insurance companies, sources said.
Statements of key persons involved indicated that the insurance companies have been executing the modus since the inception of GST.
Further investigations are in progress, sources said.