MADURAI: A show cause notice has been issued to the Rotary International South Asia Office in New Delhi for not paying Rs.96 crores GST after investigations have found that there was an alleged suppression of facts about money collected and non-payment of taxes.
The Directorate General of GST Intelligence-Kozhikode Regional Unit had conducted a thorough probe about the financial transactions of RISAO- Rotary International South Asia Office-for the financial years 2018-19 to 2023-24 and the investigation had indicated that the Rotary had not paid IGST by suppressing some facts.
“This show cause notice for tax evasion was issued on June 30th 2025 by the Joint Director of GST Intelligence asking the RISAO to give its explanation to the Joint Commissioner of CGST in Delhi on why Rs.96,11,48,362/-to be actually payable as IGST for the period April 2018 to March 2024 should not be demanded now with penalty under the provisions of CGST Act. All the documents collected during the investigation in Rotary offices and with Rotary International staff in India are attached with the show cause notice and the Rotary International South Asia Office has been asked to reply within 30 days from the date of issuing of notice,” sources said today- July 18th 2025.
The show cause notice had mentioned that the provisions of Central Goods and Services Tax Act 2017 and Integrated Goods and Services Act 2017 are applicable to Rotary International in India and the entire data was collected through GST Intelligence Unit at Kozhikode after several rounds of investigation with the Rotary staff.
“RISAO had collected a total amount of Rs.534 crores from Rotary Clubs in India but there was no remittance to the parent body in USA. The GST Intelligence wing also found that various services are being imported from Rotary International in USA for Rotary functioning in India and that activity is taxable in India. The investigation was done comprehensively and the violations done by Rotary International in India were explained from accounting point of view in the 22-page notice issued for GST dues,” sources added.
