GST Department Asks For ₹30.27 Lakh Penalty From Dalmia Bharat Subsidiary

Assistant Commissioner of State Goods and Services Tax Department, Jalpaiguri, West Bengal issued an order on Wednesday to Alsthom Industries Limited a subsidiary of Dalmia Bharat Subsidiary in relation to goods and services tax along with interest penalty, the company announced through an exchange filing. The order for ₹30.27 lakh penalty is under Section 74 of the West Bengal Goods and Services Tax Act, 2017.

The penalty includes ₹9.23 lakh tax, ₹9.23 lakh penalty and ₹11.81 lakh interest.

The company said that it has a strong case to defend the matter and will file an appeal against the order before the Commissioner within the given time.

Why was AIL fined?

Explaining the situation the company in the regulatory filing said that Goods Transport Agency (GTA) raised GST Invoice with 5 per cent GST under Reverse Charge Mechanism (RCM) and uploaded Invoice details on GSTN Portal, inadvertently declaring AIL’s GST Liability under RCM at 18 per cent instead of 5 per cent. Since the GST rate applicable on reverse charge is 5 per cent which was paid, for which undertaking from GTA was also furnished before the Department.

The company said, "AIL paid GST at 5 per cent in full compliance of GST Law since 18 per cent is not applicable. Basis GSTN Portal, GST Department demanded differential GST Liability of 13 per cent along with interest and penalty."

According to the company, the department passed the order without granting the opportunity of hearing AIL.