Tax evasion of Rs. 45 crores: Show cause notice sent to IMA by GST department
Kochi: The Central GST department has sent a show cause notice to the Indian Medical Association in connection with tax evasion. According to the GST department, it has been discovered that IMA engaged in tax evasion through falsification in its balance sheets. During a raid conducted at the IMA office, GST officials seized balance sheets in which entries were falsified.
It has been preliminarily assessed that tax evasion amounting to Rs. 45 crores was achieved through these falsifications. According to IMA, the organization is registered under the Charitable Societies Registration Act and is therefore eligible for tax exemption. However, it has been pointed out that the organization is profiting through various other means as well.
The GST department made it clear in the Kerala High Court that IMA’s activities extend beyond those of a charitable society or a club. IMA had also filed a petition challenging the notice issued by the GST department, which demanded the handing over of documents related to the organization’s assets. It is following the rejection of this petition by the High Court, the GST department has issued a show cause notice to IMA."
