The Director General of GST Intelligence (DGGI) has issued a show cause notice to e-commerce major Amazon India over alleged wrong claim of input tax credit (ITC).
The GST intelligence arm has raise 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 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.