Flipkart arm Instakart found availing GST credit fraudulently

The GST Intelligence has found that Instakart Services, a subsidiary of Walmart-owned e-commerce company Flipkart, has availed fraudulent input tax credit (ITC) worth Rs 21 crore since July 2017, according to officials. The undue credit has been availed by the firm on the basis of fake invoices issued by two of its vendors engaged in ‘manpower supply’, they said.

A Instakart Services 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 each and 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.”