Flipkart's Instakart Caught On Using Fake Invoices To Avail GST Credit

• The GST intelligence body found that Flipkart's logistics arm Instakart using fake invoices to avail GST credits.
• Instakart spokesperson denied the allegations of the company availing GST credits fraudulently.
• The company has already filed PIL in Delhi High Court against the intelligence body findings.

The Government GST Intelligence body has found Flipkart's logistics arm Instakart Services Pvt. Ltd. using fake invoices to avail GST credits.

The investigating body has alleged that Instakart has availed fraudulent input tax credits (ITC) worth Rs 21 crore since July 2017 through fake invoices.

Directorate General of GST Intelligence (DGGI) body reportedly told that the fake invoices were used by two of Instakart vendors engaged in manpower supply, Financial Express first reported.

According to the reports, the Intelligence body found that the addresses of the two vendors did not exist. Later on, it had sent out summons to Instakart questioning about the deal with the two vendors.

Meanwhile, An Instakart spokesperson denied the allegations of the company availing GST credits through fake invoices.

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The spokesperson said, “The investigation by the GST Intelligence wing concerns the non-payment of GST by two vendors. We are merely cooperating with the authorities to help with their findings to trace and track any wrongdoings by such vendors."

"We have paid every invoice of these vendors through banking channels and all documentary evidence has already been submitted to the department. The investigation is not to be misconstrued as being related to any wrongdoing by us — any such allegation is vehemently denied by us," he added.

Instakart Services said that both vendors were based on valid GST registration certificates issued by the department. "We have made payments for all the invoices," the company added.

Instakart has already filed a written PIL (Public interest litigation) in the Delhi High Court against the investigating body findings.

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