DGGI issues show-cause notice to Amazon India over Rs 175 cr tax demand

Days after top tech companies such as Flipkart’s arm Instakart, Swiggy, Uber and Ola came under the radar of the income tax (I-T) department, the Director General of Goods and Services Tax Intelligence (DGGI) has sent show-cause notice to e-commerce giant Amazon India, according to the sources. The DGGI has issued notice to the company related to tax demand which has reportedly been calculated to about Rs 175 crore.

DGGI investigation has allegedly found calculation errors made by Amazon. The company paid higher goods and services tax (GST) but instead of claiming refund took wrong input tax credit (ITC). The demand is for the interest due on the wrongly claimed ITC, according to the sources. The notices have been sent to Amazon’s Bengaluru office.