Larsen and Toubro received a Rs.173.24 crore penalty from the Joint Commissioner, CGST and Central Excise, Bhopal, for the assessment years 2017-18 to 2021-22.
Reetu | Nov 30, 2024 |
Larsen and Turbo faces Penalty of 173.24 Crore for GST Dispute; Company plans to Appeal against Order
Larsen and Toubro received a Rs.173.24 crore penalty from the Joint Commissioner, CGST and Central Excise, Bhopal, for the assessment years 2017-18 to 2021-22.
“We would like to inform you that the Joint Commissioner, CGST and Central Excise, Bhopal vide order under section 161 of The Central Goods and Services Tax Act, 2017 dated November 27, 2024, received by the company on November 28, 2024, has levied penalties of Rs.173,24,59,695 covering assessment years 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22,” a regulatory filing by Larsen and Turbo stated.
The order received by the company on November 28, 2024, issued on November 27, 2024, addresses short tax payments caused by discrepancies between the company’s financial statements and GST returns. The mismatch includes non-taxable transactions, and the company’s claims for input tax credits and reversals are also being challenged.
The penalties totalling Rs.173.24 crore, were levied under Section 122 of the 2017 Central Goods and Services Tax (CGST) Act. Larsen and Turbo seek to appeal against the order to the appellate authority.
The company is confident that it will receive a favourable decision on appeal, and it anticipates this case to have no major impact on its financials or operations.
“The company disagrees with the tax demands raised and will file an appeal against the order seeking tax, interest, and penalty. The Company anticipates a favourable outcome at the Appellate Forum,” it stated.
Larsen and Turbo’s management emphasized that the contested issues are due to technical differences between their books and GST returns, despite having provided answers to the tax authorities.
The company underlined that the dispute is primarily about interpretation issues and does not represent any attempt to evade taxes. The company argues that the continuing proceedings have had no impact on its operations or financial performance.
Larsen and Toubro Ltd’s shares closed at Rs.3,725.90, up Rs.58.25, or 1.59%, on the BSE.
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