Petronet LNG receives GST Bill of over Rs 4 crore, calls tax demand 'unjustified'

The company's filing said that the notice dated August 11 could be accessed only on August 13 after resolution of IT issues.

Petronet LNG has received a tax demand of over Rs 4 crore from the Department of Goods and Service Tax, New Delhi, the company said in a filing dated August 14.

The alleged violations include under-declaration of outward supplies and claiming input tax credit on supplies from GST identification cancelled dealer and from those who don't pay taxes. The company has said that the demand and penalties are unjustified and that it will seek legal recourse.

The filing stated: "The Company has received an order u/s Section 73 of the Goods & Services Tax Act, 2017 raising a tax demand amounting to INR 4,08,93,486/- (including penalty of INR 21,21,032 and interest as applicable) for FY 2019-20."

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The filing added that the notice, which was dated August 11 and was sent from  Department of Goods and Service Tax, Office of the Sales Tax Officer Class II, New Delhi, was accessed only on August 13 after "resolution of IT issues".

Under the details of violations/contraventions committed or alleged to have committed, the filing stated: "Under declaration of outward supplies in GSTR-9 in comparison to GSTR-1"; "Under declaration of ineligible Input Tax Credit"; "Input Tax Credit claimed on supplies from GSTIN cancelled dealers, return defaulters & tax nonpayer".

Commenting on the impact of this demand on the company, the filing stated: "Based on assessment of facts and prevailing law, the Company is of the view that the GST Demand amount, interest and penalties levied is unjustified. The Company will take an appropriate legal course of action against the said order based on legal advice."

"Accordingly, there is no likely material impact on the Company’s financials or operations due
to the said order."