The Director-General of GST Intelligence (DGGI) has issued a show-cause notice to e-commerce major Amazon India over the alleged wrong claim of input tax credit (ITC).
The GST intelligence arm has raised a demand of Rs 175 crore, sources said.
An investigation by DGGI has found calculation errors made by the e-commerce company.
According to people in the know, Amazon had paid higher goods and services tax (GST), for which it should have claimed a refund, instead, it wrongly claimed ITC on the pretext of higher tax slab.
DGGI's notice has demanded the interest due on wrongly claimed ITC.
Amazon, however, has not responded to an e-mail sent to the company on the same.
The development comes a day after the DGGI initiated a probe against cab aggregators Uber and Ola over evasion of GST and issued summons to the officials of the companies over GST evasion amounting to hundreds of crores.
