“We wish to inform you that the Joint Commissioner, CGST and Central Excise, Bhopal vide order under section 161 of The Central Goods & Services Tax Act, 2017 dated November 27, 2024, received by the company on November 28, 2024, has levied penalties of ₹173,24,59,695/- covering assessment years 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22,” L&T said in a regulatory filing.
The order, issued on November 27, 2024, and received by the company on November 28, 2024, pertains to short tax payments arising from discrepancies between the company’s financial statements and GST returns. The mismatch includes non-taxable transactions, and the company’s claims for input tax credits and reversals are also under dispute.
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The penalties, which total ₹173.24 crore, have been imposed under Section 122 of the Central Goods & Services Tax (CGST) Act, 2017. L&T intends to challenge the order with the appellate authority.
The company is optimistic about securing a favourable verdict on appeal, stressing that it expects no material impact on its financials or operations from this matter.
“The company does not agree with the tax demands raised and would be filing an appeal against the order seeking tax, interest & penalty. The Company expects a favourable outcome at the Appellate forum,” it said.
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L&T’s management further clarified that the disputed issues stem from technical discrepancies between its books and GST returns despite having furnished explanations to the tax authorities.
The company reiterated that the dispute relates mainly to interpretation issues and does not suggest any intent to evade taxes. The company maintains that its operations and financial performance remain unaffected by the ongoing proceedings.
Shares of Larsen and Toubro Ltd ended at ₹3,725.90, up by ₹58.25, or 1.59% on the BSE.
First Published: Nov 29, 2024 8:26 PM IST
