LTIMindtree faces ₹206 crore GST demand, prepares to contest unjust penalty order
IT services firm LTIMindtree Ltd on Wednesday (January 3) said it has received a tax demand of ₹206 crore, inclusive of a penalty of ₹9.1 crore and applicable interest.
“The company has received an order u/s Section 73 (5) of the Maharashtra Goods & Services Tax Act, 2017 raising a tax demand amounting to INR 2,059/- million (including penalty of INR 91 million and interest as applicable),” according to a stock exchange filing.
The violations outlined in the order include the denial of zero-rated Supply, resulting in the demand for output IGST, and the rejection of previously granted refunds. Additionally, the order involves the disallowance of Input Tax Credit.
LTIMindtree, in response to the order, maintains that the GST demand, interest, and penalties imposed are unjustified based on a comprehensive assessment of facts and existing laws. The company has announced its intent to pursue an appropriate legal course of action against this order, collaborating with its advisors.
“Based on the assessment of facts and prevailing law, the company is of the view that the GST Demand amount, interest, and penalties levied are unjustified. The company will take an appropriate legal course against the said order in consultation with its advisors,” the company said.
Despite the significant financial implications indicated by the order, LTIMindtree asserts that there is no anticipated material impact on the company’s financials or operations.
The company received an order from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai issued under Section 73 (5) of the Maharashtra Goods & Services Tax Act, 2017.
Shares of LTIMindtree Ltd ended at ₹5,960.00, down by ₹182.65, or 2.97% on the BSE.