NTPC Receives ₹19.97 Cr GST Demand For FY20-21, To Challenge ₹9.98 Cr Tax & Equal Penalty
NTPC Limited has received a Rs 19,96,97,068 tax demand from the Additional Commissioner, CGST & Central Excise, Patna-1, for FY20 and FY21 over alleged input tax credit reversal issues. The company will appeal the order and said it sees no material impact on operations or financials.
NTPC Limited has received a Rs 19,96,97,068 tax demand from the Additional Commissioner, CGST & Central Excise, Patna-1. | File Image |
New Delhi: State-run NTPC Limited has received a tax demand order of Rs 19,96,97,068 from the Additional Commissioner, CGST & Central Excise, Patna-1, Bihar, relating to financial years 2019-20 and 2020-21. The company said it will challenge the order within the prescribed timeline and expects no material impact.
NTPC Limited is moving to contest a fresh tax demand even as it reassures investors that the order will not dent its financial or operational performance.
Tax Demand Raised
The order, dated 27 February 2026, was issued under Section 74 of the CGST Act 2017 and Bihar GST Act 2017. The authority has raised a combined demand of Rs 19,96,97,068 towards tax and penalty for the financial years 2019-20 and 2020-21.
The communication was received on 27 February 2026 at 16:15 PM, according to the company’s stock exchange filing.
ITC Reversal Dispute
At the heart of the matter is the reversal of input tax credit linked to credit notes, even though the company said such ITC was not availed. The authority has demanded Rs 9,98,48,534 in tax and an equal amount as penalty, taking the total to Rs 19,96,97,068.
The order was passed by the Additional Commissioner, CGST & Central Excise, Patna-1, Bihar, under Order No. 57/GST/ADC/2025-26 dated 27.02.2026.
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Company To Appeal
NTPC said it will file an appeal before the First Appellate Authority, CGST & Central Excise (Appeals), Patna, within the prescribed timeline. The company indicated that it intends to contest the demand through the available legal process.
The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
No Financial Impact
Importantly, NTPC clarified that the order will have no material impact on its financials, operations, or other activities. That assurance is likely to ease immediate investor concerns.
For now, the focus shifts to the appellate process, where the company will seek relief against the tax and penalty demand.
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