GST authorities drop Rs.7crore service tax demand against CCI

GST authorities have dropped an Rs 7.08 crore service tax demand against the Competition Commission of India (CCI) saying the statutory body does not render any taxable service.

The CGST commissioner audit passed the order on an appeal filed by the competition watchdog against the show cause notice by the Directorate General of GST Intelligence (DGGI), Delhi zone.

The DGGI issued the show cause notice in 2020 based on an “intelligence report” that the CCI is not paying service tax on the fees/consideration received by it while providing the services to various persons.

It was stated in the show cause notice that the CCI was collecting fees from persons or enterprise that approached them for various purposes like acquisitions, mergers, or amalgamations, but have not registered under the Finance Act, nor discharged their service tax liability.