Heavy GST penalties on co executives face legal scrutiny

THE Directorate General of Goods and Services Tax Intelligence (DGGI) has issued thousands of notices to various companies, as well as their directors and promoters, regarding the wrongful availment of input tax credit (ITC), according to sources.

- MONIKA YADAV

This tax dispute primarily concerns the failure of the vendors to remit taxes to the government, in addition to other issues related to credit availment and utilisation.

According to experts, a key question arising from this situation is whether tax liability can be imposed on the service recipients, especially when they are not at fault. The ongoing investigations highlight the complexities surrounding tax compliance and the responsibilities of all parties involved in the supply chain.