Legal23 Feb 2025, 12:28 am
LTIMindtree Faces INR 461 Million GST Demand for FY20-21; Company to Challenge the Order
AI Summary
LTIMindtree Ltd has received an order from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai under Section 73 of the Maharashtra Goods & Service Tax or CGST Act, 2017, raising a total demand of INR 461 million (including a penalty of INR 26 million and interest as applicable) for FY 2020-21. The order is related to the denial of Zero-Rated Supply, leading to a proportionate reversal of Input Tax Credit. The company believes that the GST demand is unjustified and plans to take an appropriate legal course against the said order in consultation with its advisors. There is no likely material impact on the Company’s financials or operations due to the order.
Key Highlights
- LTIMindtree Ltd received an order from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai under Section 73 of the Maharashtra Goods & Service Tax or CGST Act, 2017 for FY 2020-21.
- The order raises a total demand of INR 461 million, including a penalty of INR 26 million and interest as applicable.
- The denial of Zero-Rated Supply has led to a proportionate reversal of Input Tax Credit.
- LTIMindtree considers the GST demand to be unjustified and plans to challenge the order through appropriate legal means.
- The company does not anticipate any significant impact on its financials or operations due to the order.