LTiMindtree Limited has received an order from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai, under Section 73 of the Maharashtra Goods & Service Tax or CGST Act, 2017. The order was received on February 21, 2025, and it entails a total demand of INR 461 million, comprising a penalty of INR 26 million and interest as applicable, for the fiscal year 2020-21.
The specific issue raised by the authorities is related to the denial of zero-rated supply, which led to the proportional reversal of input tax credits. However, LTiMindtree Limited disputes the GST demand, including the penalty and interest, and believes that the order is unjustified based on its assessment of the facts and the prevailing law.
The company plans to take an appropriate legal course against the said order, consulting with its advisors. This development may result in further legal proceedings and negotiations with the authorities to resolve the matter. The company will likely engage in a thorough analysis of the order and gather evidence to support its position, seeking to have the demand set aside or reduced, or possibly appeal the order up to the highest court if necessary. As the matter unfolds, the company will provide updates on any new developments, though the current situation appears to be challenging and contentious.