Coromandel International has received a demand order for ₹5.96 Crore from the Assistant Commissioner (ST)(FAC) in Chennai. This comprises tax, interest, and penalty related to alleged excess availment of Input Tax Credit (ITC). The company believes it has a strong case and intends to appeal, stating the demand’s financial impact will only extend to the amount of GST Input Tax Credit, interest, and penalty if the appeal is unsuccessful.
Details of Tax Demand
Coromandel International has been issued a demand order by the Assistant Commissioner (ST)(FAC), Harbour Assessment Circle, Chennai. The total demand amounts to ₹5.96 Crore, which includes tax, interest, and penalty.
Breakdown of the Demand
The demand is broken down as follows:
- Tax: ₹3,40,20,775
- Interest: ₹2,22,13,236
- Penalty: ₹34,02,077
Reasons for the Demand
The demand is based on the alleged excess availment of Input Tax Credit (ITC) due to two primary reasons:
- Import data (Bill of entries) did not transfer from the ICEGATE portal to the GSTN Portal, involving ₹3.2 crores of GST Input Tax Credit.
- ITC related to ₹18 Lakhs involving suppliers whose registration was canceled, suppliers who filed NIL GST returns & failed to file GST returns.
Company’s Response
Coromandel International believes it has a strong case to defend on merits and intends to pursue an appeal. The company anticipates that if the appeal is unsuccessful, the financial impact will be limited to the extent of the GST Input Tax Credit, interest, and penalty. The company stated that there is no material impact on financials, operations or other activities of the Corporation.
Source: BSE