Godrej Landmark Redevelopers gets Rs.129 Crore GST Demand Notice

The Godrej Landmark Redevelopers (GLRPL), which has since merged with Godrej Projects Development (GPDL), a subsidiary of Godrej Properties, has received an order from the Additional Commissioner, CGST and C. Ex., Navi Mumbai, for a GST Notice of Rs. 129.39 crores, plus interest and a penalty of Rs. 129.39 crores. The total liability stands at Rs.258.78 crore.

The order comes from an alleged failure to pay GST (Goods and Services Tax) on one of GLRPL’s Mumbai projects.

“GPDL will challenge the order in the appropriate forum in accordance with the law, and there will be no material impact on the company’s financial, operational, or other activities. Based on the company’s assessment and applicable law, GPDL reasonably expects a favourable outcome from the appellate authority given the current legal position and the appropriate precedents,” the company stated in a regulatory filing.

Godrej Redevelopers (Mumbai) (GRMPL), another of its subsidiaries, recently received an order for a GST demand of Rs. 48.31 crore, along with interest and a penalty of Rs 48.31 crore. The order stemmed from an alleged failure to pay GST on one of GRMPL’s projects in Mumbai.

CIDCO also revoked Godrej Properties’ allotment of two adjacent plots in Sampada, Navi Mumbai. However, the company has challenged the cancellation order in a writ petition filed with the Bombay High Court. “Based on the company’s assessment and prevailing law, the Company reasonably expects a favourable outcome given the current legal position,” it stated in its filing with the regulatory agency.

Godrej Properties was the highest bidder in the CIDCO e-auctioning process in March 2021, with a total bidding value of Rs. 166 crore for the two adjacent plots.

The company intended to build premium residential apartments on 1.5 acres of land. According to the company, this project had a development potential of approximately 4 lakh square feet.