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LTIMindtree gets GST demand order of ₹155.7 crore for FY19
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The order primarily revolves around alleged violations related to zero-rated supplies, resulting in the imposition of taxes and the reversal of input tax credits. Shares of LTIMindtree Ltd ended at ₹4,718, up by ₹63.55, or 1.37%, on the BSE.
Indian IT services company LTIMindtree Ltd on Monday (May 6) said it has received an order under Section 73 of the Maharashtra Goods & Services Tax Act, 2017, demanding a sum of ₹155.7 crore.
This amount includes a penalty of ₹7.1 crore, alongside accrued interest, pertaining to the fiscal year 2018-19. The order comes from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai.
The order primarily revolves around alleged violations related to zero-rated supplies, resulting in the imposition of taxes and the reversal of input tax credits.
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Specifically, the authorities contend that the company’s actions led to the demand for output integrated goods and services tax (IGST) or the proportional reversal of input tax credit (ITC), as well as the rejection of previously granted refunds.
Responding to the situation, LTIMindtree expressed its disagreement with the tax demand, asserting that it perceives the assessment as unjustified based on the prevailing laws and factual analysis. The company reiterated its commitment to pursuing appropriate legal recourse against the order, in consultation with its advisors.
“Based on an assessment of facts and prevailing law, the company is of the view that the GST demand (including interest and penalty) is unjustified. The company will take an appropriate legal course against the said order in consultation with its advisors,” it said.
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“Accordingly, there is no likely material impact on the company’s financials or operations due to the said order,” the company added.
Shares of LTIMindtree Ltd ended at ₹4,718, up by ₹63.55, or 1.37%, on the BSE.
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