On Thursday, August 29, 2024, state-owned Shipping Corporation of India Ltd (SCI) announced it had received a significant demand order from the Deputy Commissioner of State Tax in Mumbai, amounting to ₹160.37 crore. This order, dated August 28, 2024, stems from discrepancies in the input tax credit (ITC) reported in GSTR-24 and differences in turnover as reflected in the company's GST returns for the financial year 2019-20.
The demand order includes ₹77.66 crore in tax, along with additional interest and penalties. The order was issued following a GST audit conducted under Section 65 of the CGST Act/MGST Act, 2017.
In response, SCI is preparing to file an appeal before the Joint Commissioner of State Tax (Appeals), expressing confidence in a favourable outcome. The company strongly believes that the demand is unjustified and expects no material financial impact from this dispute.
"The company is in the process of filing an appeal before the Joint Commissioner of State Tax (Appeal) and expects a favourable outcome. The company believes that the said demand is not maintainable and therefore, there will not be any material financial impact," SCI stated.
Following the news, shares of Shipping Corporation of India Ltd closed at ₹266.95 on the BSE, down by ₹4.20, or 1.55%.
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