INR 160 Crore goods and service tax (GST) demand notice has been imposed on the Shipping Corporation of India from the Deputy Commissioner of State Tax, Government of Maharashtra, for the financial year 2019-20, as per the filing of the company in the BSE.
“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,” the company expressed in the exchange filing.
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GST order cited that the company owes the taxation body Rs 1,60,37,35,973 or Rs 160 crore, which has the tax component, interest, and penalty.
It has been cited by the tax order that the company owes close to Rs 77.66 crore in tax component dues, and the remaining amount has been covered with interest on the dues and penalty charges. The company cited that the demand has been raised because of the mismatch in the Input Tax Credit (ITC).
The company mentioned in the exchange filing “As per the 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.”
The company stated that the GST order was obtained as per the GST audit conducted u/s 65 of the CGST Act/MGST Act, 2017, for the FY 2019-20, as per the Shipping Corporation of India disclosure.
The company is in the appeal filing process to the Joint Commissioner of State Tax and anticipates a favorable outcome, as per the filing. As per the company’s statement, the demand notice is not maintainable and hence will not have any material financial impact.
Shipping Corporation of India is an Indian government-owned shipping company obligated for nearly one-third of the Indian tonnage. The major role of the country’s import and export trade has been played by the company.
