MOIL Limited has disclosed the receipt of an order from the Joint Commissioner of State Tax regarding GST mismatches for the 2022-23 financial year. The tax authority has raised a total demand of Rs. 1,27,68,306, which includes the principal tax amount and penalties. The company has clarified that the discrepancies stem from stock and inter-unit transfers. Management is currently reviewing the order and plans to contest it through the appropriate legal channels.
Details of the Tax Order
On March 31, 2026, MOIL Limited received a formal order from the Joint Commissioner of State Tax, Chhindwara Division, under the CGST/SGST Act, 2017. The demand pertains to the fiscal year 2022-23 and highlights alleged inconsistencies between outward supplies reported in GSTR-1, outward E-way bills, and Input Tax Credit (ITC) claims.
Breakdown of Financial Liability
The total demand imposed by the tax authorities amounts to Rs. 1,27,68,306. This figure is categorized as follows:
- IGST: Rs. 1,16,07,551
- Penalty: Rs. 11,60,755
- Interest: Nil (subject to calculation at the time of payment)
Company Stance and Next Steps
MOIL Limited attributes the cited discrepancies to stock transfers, inter-unit transfers, capitalization of capital goods, and various timing differences inherent in their accounting processes. The company has confirmed that this order has no immediate operational impact on its day-to-day business activities. Moving forward, the firm intends to file a formal appeal within the statutory timeframe to address and resolve these tax demands.
Source: BSE
