ACC Limited has received an order under Section 73(9) of the CGST Act. The company intends to contest the order imposing the demand before the appropriate authorities within the prescribed timeline. The order determines a total liability of Rs. 34,06,67,810 including tax, interest and penalty. A separate order under the TNGST/CGST Act, 2017 was passed with a total liability of Rs. 1,69,64,06,846.
CGST Act Order Received
ACC Limited has received an order under Section 73(9) of the CGST Act, MGST Act, IGST Act & GST (Compensation to States) Act, 2017. The company will contest the orders imposing the demand before the appropriate authorities within the prescribed timeline.
Total Liability Details
The order determines the following total liabilities:
- Tax: Rs. 12,76,22,339
- Interest: Rs. 19,01,57,660
- Penalty: Rs. 2,28,87,811
- Total: Rs.34,06,67,810
The interest is calculated till date of payment.
TNGST/CGST Act Order
Additionally, the company also received an order under section 75(9) of the TNGST/CGST Act, 2017, with the following liabilities:
- Total Tax: Rs.153,81,80,778
- Penalty: Rs.15,82,26,068
- Total: Rs. 1,69,64,06,846
Interest is payable under Section 50(1).
Key Violations Identified
The violations/contraventions leading to the order include:
- Mismatch in Tax Liability
- Disallowance of certain credit notes
- Excess ITC Claimed
- ITC on Imports & Ineligible Credits
- RCM on GTA & Royalty on minerals tax partial unpaid
- GST liability on asset sales
Other Expenses Impact
The violations/contraventions leading to the order also include:
- Turnover Reconciliation (GSTR-9 vs GSTR-9C)
- ITC Mismatch (Table 8 of GSTR-9)
- Credit Note ITC Reversal
- ITC Mismatch (GSTR-3B vs GSTR-2B)
- Other Expenses
- Depreciation & Amortisation
- Freight & Forwarding
- Employee Benefits
- Purchase of Stock-in-Trade
- Sundry Creditors
The company is taking appropriate steps to appeal against the orders and does not foresee any material impact on financial or operational activities.
Source: BSE
