Shipping Corporation of India receives ₹160 crore GST demand notice for FY2020
Aug 29, 2024
Shipping Corporation of India received a ₹160 crore goods and service tax (GST) demand notice from the Deputy Commissioner of State Tax, Government of Maharashtra, for the financial year 2019-20, according to the company's filing in the Bombay Stock Exchange (BSE) on Thursday, August 29.
“The Company has received a order dated 28th August 2024 under Section 73 of the MGST Act 2017, & CGST Act, 2017 from the mentioned authority,” said the company in the exchange filing.
The GST order stated that the company owes the taxation body ₹1,60,37,35,973 or ₹160 crore, which includes tax component, plus interest, plus penalty, as per the release.
The tax order specifies that the company owes close to ₹77.66 crore in tax component dues, and the remaining amount is covered with interest on the dues and penalty charges. The company also said that the demand has been raised due to a mismatch in the Input Tax Credit (ITC).
“As per given order, the total demand of ₹1,60,37,35,973.00/- (including tax Tax, component of ₹77,66,21,740 /- plus interest & of penalty) has been raised which is mainly on account of Mismatch of Input Tax Credit (ITC) with GSTR-2A and Difference in Turnover reported in GST returns,” said the company in the exchange filing.
The company also disclosed that the GST order was received as per the GST Audit conducted under section 65 of the CGST Act/MGST Act, 2017, for the financial year 2019-20, according to the Shipping Corporation of India's disclosure.
The company is in the process of filing an appeal before the Joint Commissioner of State Tax and expects a favourable outcome, according to the filing. The company said that the demand notice is not maintainable and therefore, will not be of any material financial impact, as per the company's statement.
Shipping Corporation of India (SCI) shares closed 1.55 per cent lower at ₹266.95 after Thursday's trading session, compared to ₹271.15 in the previous market close. The company filed the GST order with the exchange after market operating hours.
Shipping Corporation of India is an Indian government-owned shipping company responsible for nearly one-third of the Indian tonnage. The company plays a major role in the country's import and export trade.
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