Reliance General Insurance Company (RGIC), a subsidiary of Reliance Capital, recently received show cause notices amounting to nearly Rs 923 crore from the Directorate General of GST Intelligence (DGGI).
About Directorate General of GST Intelligence (DGGI)
- Erstwhile Directorate General of Central Excise Intelligence (DGCEI), now renamed as Directorate General of GST Intelligence (DGGI), is an apex intelligence organization functioning under the Central Board of Indirect Taxes & Customs, Department of Revenue, Ministry of Finance.
- It is entrusted with the task of collection, collation, and dissemination of intelligence relating to the evasion of Goods and Services Tax (GST) and the duties of Central Excise and Service Tax on an all India basis.
- It was earlier known as the Directorate General of Anti-Evasion (DGAE).
- It was establishedin 1979as an independent wing under the control of Directorate of Revenue Intelligence, New Delhi with the Regional Units located at Chennai, Delhi, Kolkata and Mumbai.
- It became a full-fledged Directorate in 1983, headed by a Director.
- In 1988, the Directorate was upgraded to Directorate General under a Director General.
- DGGI has been expanded since, and now it comprises of 04 offices of Director General (East, West, North, and South), 26 Zonal Units, and 40 Regional Units.
The main responsibilities of the DGGI are:
- Intelligence gathering: The DGGI is responsible for gathering intelligence about potential violations of the GST law. This includes collecting information from various sources, such as GST returns, financial statements, and other documents.
- Investigation: The DGGI has the power to conduct investigations into suspected cases of GST evasion or non-compliance. This may involve summoning persons, examining records, and carrying out searches and seizures.
- Enforcement: The DGGI is responsible for enforcing the provisions of the GST law. This includestaking legal action against offenders, imposing penalties, and recovering any taxes or duties due.
- The DGGI works closely with other agencies, such as the Central Board of Indirect Taxes and Customs (CBIC) and the State GST authorities, to ensure effective implementation of the GST law.
- It also plays a key role in creating awareness about GST compliance and educating taxpayers about their obligations under the law.
- It is also responsible for providing technical and legal assistance to field officers and other government agencies involved in the administration of the GST.
Q1: What is Goods & Services Tax (GST)?
It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. It is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country.