LTIMindtree gets Relief from Rs.378 Crore GST Notice as Karnataka HC stays Demand Order

LTIMindtree, an IT services company, announced that the Karnataka High Court has issued a stay order on a Goods and Services Tax (GST) notice of Rs.378 crore that it received.

“The High Court has stayed the proceedings pursuant to the above Show Cause Notice until the next date of hearing, which has yet to be notified,” the Mumbai-based IT company stated in a regulatory filing.

The Department of Revenue, Ministry of Finance, issued a show cause notice to LTIMindtree, the country’s sixth largest IT major, in April for allegedly failing to pay Integrated Goods and Services Tax on export revenue for services delivered to clients abroad.

The Department of Goods and Services Tax, Office of the Principal Commissioner of Central Tax and the Joint Commissioner of Central Tax in Bengaluru had issued this notice.

The company said it received an identical notice from the same authority for another GST registration.

LTIMIndtree responded by filing a writ petition with the High Court of Karnataka on August 20 to contest the show cause notice’s legitimacy and validity. The writ petition was set for hearing on August 27.

“Based on initial assessment, prevailing law and advice of counsel, the Company anticipates an ultimate favourable resolution and does not reasonably expect the same to have any material financial impact on the Company,” according to LTIMindtree.