Devyani International Ltd Receives Demand Order from Assistant Commissioner of Central Tax, Karnataka under Section 74 of the Central Goods and Services Tax Act, 2017
Devyani International Ltd has received a Demand Order from the Assistant Commissioner of Central Tax, Karnataka under Section 74 of the Central Goods and Services Tax Act, 2017. The demand is for the period starting from FY 2018-19 to FY 2022-23, regarding alleged short reversal of Input Tax Credit (‘ITC’) on exempt supplies and alleged incorrect availment of ITC on inward supply. The total demand is Rs. 5.42 Mn (comprising Tax of Rs. 1.51 Mn and Penalty of Rs. 3.91 Mn). The Company is in the process of evaluating the Demand Order and shall take necessary steps available under applicable law including filing of appeal with the Appellate Authority. There is no material impact on financial, operation or other activities of the Company on account of the above order.
Key Highlights
- Devyani International Ltd received a Demand Order from the Assistant Commissioner of Central Tax, Karnataka under Section 74 of the Central Goods and Services Tax Act, 2017.
- The demand is for the period starting from FY 2018-19 to FY 2022-23, regarding alleged short reversal of Input Tax Credit (‘ITC’) on exempt supplies and alleged incorrect availment of ITC on inward supply.
- The total demand is Rs. 5.42 Mn (comprising Tax of Rs. 1.51 Mn and Penalty of Rs. 3.91 Mn).
- The Company is in the process of evaluating the Demand Order and shall take necessary steps available under applicable law including filing of appeal with the Appellate Authority.
- There is no material impact on financial, operation or other activities of the Company on account of the above order.