GST’s IT developers gets tax evasion notice

The service tax department has summoned Prakash Kumar, CEO of Good and Service Tax Network (GSTN), for possible evasion of tax on software services received from IT major Infosys.

The GST network was set up to provide IT infrastructure and services to the Central and State Governments, taxpayers and other stakeholders for the implementation of the GST.

However, Kumar has denied receiving any such notice from the tax department.

Central and state government have paid several crores to GSTN to provide IT infrastructure and network for the rollout of the GST. 

GSTN took loans to pay Infosys even after government funding and tried unsuccessfully to make state governments repay parts of loan interest. GSTN’s main income will be the charges to be levied on the IT network’s users. GSTN in loggerheads with CAG on audit Audit. Last week, the GSTN rejected a CAG request to appoint an auditor and conduct a supplementary audit, claiming its formation rules allowed it to be outside any such interference.

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