Petronet LNG Moves Gujarat High Court Against Rs 283.72 Crore GST Demand on ‘Use or Pay’ Charges:

The Petronet LNG Ltd has approached the Gujarat High Court by filing a writ petition challenging a show-cause notice issued by the Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, on applicability of Goods and Services Tax (GST) on ‘Use or Pay’ charges. The petition was filed on 30th October, 2026 under the relevant provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

TThe show-cause notice proposed a demand of Rs 283.72 crore under GST, along with applicable interest and equal penalty. Rs 262.61 crore is related to FY 2022-23 and FY 2023-24 and balance Rs 21.11 crore is related to FY 2024-25.

The company has challenged the demand, stating the GST amount, interest and penalties proposed in the notice are not justified in view of the facts of the case and the prevailing laws. It has moved the High Court seeking relief against the notice.

The company further stated that it does not expect the matter to have any material impact on its financial position or business operations. The disclosure was made to the stock exchanges under Regulation 30 of the SEBI LODR Regulations, 2015.