In an unexpected development within India’s aviation sector, a major Middle East airline finds itself at the center of an extensive investigation by Indian financial crime agencies. Qatar Airways is currently under investigation by India’s Directorate General of GST Intelligence (DGGI) for alleged tax evasion. This probe, led by the DGGI, is delving into allegations of tax evasion tied to the airline’s operations in the country.
The DGGI, which specializes in uncovering tax-related offenses, ramped up its investigative efforts in October. They conducted a series of searches at Qatar Airways’ offices in India, signaling a deepening of the inquiry into the airline. The investigation is still in its early stages, according to a DGGI spokesperson, but it has already uncovered substantial concerns.
Uncovering Tax Evasion Allegations
The crux of the investigation revolves around incidents of tax evasion that could amount to INR57 billion rupees (USD685.1 million). These findings stem from over 6,000 instances of suspected false input tax credit claims, identified between April 2020 and September.
It’s important to note that while Qatar Airways is currently the focus, it remains unclear if these figures pertain solely to the airline or include other carriers as well. It’s also crucial to mention that ch-aviation has not accused Qatar Airways of tax evasion, but merely reports on the ongoing investigation and the allegations that have arisen.
The investigation gains additional significance considering Qatar Airways’ extensive operations in India. The airline, according to ch-aviation capacities data, operates flights to 13 Indian destinations, offering a total of 120 roundtrips each week. This amounts to approximately 24,500 seats offered in either direction, highlighting Qatar Airways’ substantial presence in the Indian aviation market.
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