Petronet LNG Limited has filed a writ petition with the Gujarat High Court challenging a Show Cause Notice (SCN) issued by the Directorate General of GST Intelligence. The SCN demands payment of approximately ₹283.72 crore in GST, interest, and penalties related to ‘Use or Pay Charges’. The company believes the demand is unjustified and anticipates no material impact on its financials.
Litigation Over GST Demand
Petronet LNG Limited has initiated legal proceedings by filing a writ petition with the Hon’ble High Court of Gujarat. This action challenges a Show Cause Notice (SCN) issued on 30th October 2026 by the Directorate General of GST Intelligence, Delhi Zonal Unit. The dispute centers on GST demands concerning ‘Use or Pay Charges’.
Financial Implications Assessed
The company’s assessment indicates that the levied GST amount, along with associated interest and penalties, is considered unjustified. Consequently, Petronet LNG anticipates that this litigation will have no likely material impact on its overall financial performance or operational activities.
Details of the Claim
The SCN proposes a recovery totaling ₹283.72 crore. This figure is broken down into ₹262.61 crore for the financial years 2022-23 and 2023-24, and an additional ₹21.11 crore for the financial year 2024-25. The demand also includes applicable interest and an equivalent penalty.
Source: BSE