Recovery agent or tech provider? DGGI probe puts loan collection firms’ GST model under scanner

The Directorate General of GST Intelligence (DGGI) is investigating several loan-recovery agencies over their classification as general service providers, a practice that allows them to claim input tax credit (ITC) on expenses and potentially offer services to banks at lower prices, sources told Moneycontrol. At the heart of the dispute is a difference in how the two categories are taxed. Traditio…