DGGI sends notices to about 10-12 mutual funds, seek details of accounting for expenses

The Directorate General of Goods and Services Tax Intelligence (DGGI) has sent notices to about 10-12 mutual funds, sources privy to the developments told CNBC-TV18.

The notices or letters of inquiry were sent to 10 to 12 mutual fund houses seeking details of their past transactions, which they find suspicious. DGGI believe that mutual funds have booked certain expenditures, against which they have claimed wrongfully input tax credit (ITC) to lower their GST liability.

DGGI has alleged that this pertains to mutual funds claims in 2017-18, where it has found discrepancies in accounting by Asset Management Companies (AMCs) for expenses, capped at 2.25 percent of assets under management (AUM).