Diligent Media Corporation Ltd Receives GST Demand Order of Approx. Rs. 3.99 Crores

Diligent Media Corporation Ltd has received a GST Demand Order from the Office of the Assistant Commissioner of State Tax, Mumbai, demanding an amount of approximately Rs. 3.99 crores towards tax, interest, and penalty under the Central Goods and Services Tax Act, 2017 for the tax period FY 2019-20. The order relates to the purported non-levy of GST on the transfer / assignment of leasehold rights in respect of a leasehold industrial plot situated in Mumbai and sold by the Company to M/s CTRL S (India) Pvt. Ltd. The Authority held that such transfer constitutes a taxable supply of services under the GST laws and has raised demand accordingly. The Company intends to file a writ petition before the Hon’ble High Court of Bombay in respect of this order.