Gujarat Ambuja Exports Receives GST Demand Order of Rs. 33 Lakh

Gujarat Ambuja Exports Limited (GAEL) has informed the stock exchanges, BSE and NSE, that it has received a Goods and Services Tax (GST) demand order from the Assistant Commissioner of State Tax, Ahmedabad. This order was issued under Section 74 of the Gujarat Goods and Services Tax (GGST) Act, 2017, dated 11th July, read along with the Central Goods and Services Tax (CGST) Act, 2017.

The demand order shows a total tax liability of Rs. 33,03,406, which involves Rs. 10,83,084 as tax, Rs. 10,83,084 as penalty and Rs. 11,37,238 as interest charged under Section 50(3) of the GST Act. This order is related to the FY 2019-20. The reason behind this demand as mentioned in the communication is due to ineligible Input Tax Credit (ITC) claimed by the company. The GST department observed these ITC claims were made from suppliers who were either cancelled, non genuine or non existent.

Even after the tax demand the company has said that there is no major impact on its financials, operations or other business activities. The penalty of Rs. 10,83,084 is also included in the total demand. On the basis of its internal review of the facts and legal position the company believes that the demand is unfair, not reasonable and does not follow the law.

The company is in the process of preparing a detailed reply, supported by all important documents and will be filing an appeal with the Divisional Deputy Commissioner of State Tax (Appeals) within the required time frame of three months from the receipt of the order. It has also confirmed that the information provided is true and complete to the best of its knowledge and has uploaded the disclosure on its official website for public access.