tyre industry news

Indian Tyre Majors Under Scanner For GST Misuse

In a major event recently, some of the tyre majors of the country such as JK Tyre, MRF, Apollo and CEAT are under scanner for the possible misuse of provisions related to Goods and Services Tax (GST). Authorities are also probing if there were also instances of evasion of taxes in some cases.

As per the sources, the authorities are currently examining multiple issues that include non-payment of taxes on the amount recovered through debit notes, excess claim of input credit and transactions between depots and plants. Though there was no estimate of violations involved, but some of the suppliers are said to have admitted to a tax liability and have made the initial payments. In order to avoid prosecution proceedings, the suppliers have the option to pay taxes with interest in addition to 15 percent penalty under the Central Goods and Services Act (CGST Act), told a senior tax lawyer.

JK Tyre responded to a questionnaire e-mailed by a leading newspaper that they are in communication with the GST wing on certain matters of interpretation that need to be clarified for the entire tyre industry. The work is in progress and they are hopeful that the conclusion will arrive soon.

The tyre industry has been on the radar since the last 6 months as the preliminary data have shown instances of mismatches in return to the government.



Source: Times of India

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