Socialite Shalini Passi, wife of businessman Sanjay Passi, has been summoned by the Meerut unit of the Directorate General of GST Intelligence (DGGI) for questioning on Thursday in connection with an alleged case of GST evasion.
According to a media outlet, the case involves Pasco Motors LLP, a company in which Shalini Passi was a partner, and concerns the alleged short payment of GST. Pasco Motors is an authorised dealer engaged in the sale of heavy motor vehicles, including both chassis and fully built buses and trucks. The DGGI had earlier issued summons to Sanjay Passi and other executives of Pasco Motors, but they have yet to join the investigation.
JK Mittal, lawyer for Sanjay Passi, has denied the allegations of tax evasion, calling the claims false. He stated that the GST summons issued by the DGGI is “malafide” and noted that the summons did not mention any tax evasion. Mittal also confirmed that the matter is currently sub judice, as it has been challenged in the Punjab and Haryana High Court. He also acknowledged that Shalini Passi was a partner in Pasco Motors LLP, and that the DGGI is investigating the alleged “short payment of GST,” as mentioned in the summons.
The media report, attributing sources, has claimed that Pasco Motors issues a single invoice for the sale of fully built buses and trucks but splits the total value into two components: one for the chassis, which is taxed at a GST rate of 28%, and another for body fabrication, which is taxed at a GST rate of 18%. It is alleged that this practice is in violation of GST regulations.
As per the law, when a bus body builder constructs and supplies a fully built-up bus, the entire supply should be taxed at a flat 28% GST, claimed sources. The sources have suggested that by charging different GST rates for the chassis and body fabrication in a single invoice, Pasco Motors LLP had been allegedly evading GST.
GST Intelligence has requested that the company clarify the differential GST rates charged to customers and provide supporting documents. After receiving no response, the agency issued summons to the company and its partners to record statements and ensure compliance.
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