Shipping Corporation gets GST Tax Demand Notice of Rs.160 crore for FY20 over ITC Mismatch

The Shipping Corporation of India received a GST tax demand notice of Rs.160 crore from the Deputy Commissioner of State Tax, Government of Maharashtra for the financial year 2019-20, according to a filing with the Bombay Stock Exchange (BSE) on Thursday, August 29.

“The Company has received an order dated August 28, 2024, under Section 73 of the MGST Act 2017 and the CGST Act, 2017 from the mentioned authority,” the company stated in the exchange filing.

According to the GST order, the company owes the taxation authority Rs.1,60,37,35,973, or Rs.160 crore, which includes the tax component, interest, and penalty.

The tax order says that the company owes over Rs.77.66 crore in tax component dues, with the remainder covered by interest and penalty costs. The company also stated that the demand has been raised due to a discrepancy in the Input Tax Credit.

“Based on the issued order, the total demand of Rs.1,60,37,35,97 (including tax, a component of Rs.77,66,21,740 plus interest and penalty) has been raised which is primarily on account of Mismatch of Input Tax Credit (ITC) with GSTR-2A and Difference in Turnover reported in GST returns,” said the company in its filing with the exchange.

In accordance with the Shipping Corporation of India, the GST order was received in accordance with the GST Audit undertaken under Section 65 of the CGST Act/MGST Act, 2017, for the financial year 2019–20.

In regard to the filing, the company is in the process of appealing to the Joint Commissioner of State Tax and expects a favourable decision. According to the company’s statement, the demand notice is not maintainable and would consequently have no meaningful financial impact.

Shipping Corporation of India (SCI) shares concluded 1.55% lower at Rs.266.95 after Thursday’s trading session, compared to the previous market close at Rs.271.15. The company submitted the GST order to the exchange after trading hours.

Shipping Corporation of India is an Indian government-owned shipping corporation that accounts for roughly one-third of total Indian tonnage. The company plays an important part in the country’s import and export trade.