Mumbai: Top corporates and Multi National Companies (MNC) have filed appeals with the tax Appellate Authority to challenged the Goods and Services Tax (GST) demand notices for lleged discrepancy in input tax credit (ITC).
India Inc shaken by the spate of GST demand notices across Banking, Insurance, FMCG and Telecom sector for short payments of GST, mismatch in ITC claims, availment and utilisation of excess ITC, undischarged tax liability and other alleged irregularities has appealed to Tax Appeallate Authorities for relief.
Tata Enterprise company Rallis India, got four orders from the Joint Commissioner of Sales Tax (Appeals), Nagpur division, dismissing the appeals filed before it for classification of business activities, and dues aggregating to Rs 5.01 crore, including interest and penalty, under the Bombay Sales Tax Act and Central Sales Tax Act for the financial years 1999-2000 and 2000-2001.
“Based on the merits of the matter, prevailing law, and the advice of the counsel, the company is planning to appeal against these orders before the Appellant Authority expecting favourable orders from the authorities," Rallis India said.
ICICI Lombard General Insurance Company Limited had received an order from the Additional Commissioner, Customs & Central Tax, Hyderabad GST Commissionerate, raising a GST demand of Rs 14,786,059 and levying penalty of Rs 14,78,606 which has been appealed by the insurance company.
The order imposed the demand on the grounds of computation of input tax credit eligible to the company and alleged undischarged tax liability due to differences between the returns filed by the company.
“The company would pursue an appeal with the Appellate Authorities and evaluate other legal options against the order," ICICI Lombard said in a statement.
Mobile telecom service provider Vodafone Idea was slapped an order under the Central Goods and Services Tax Act, 2017, confirming a penalty of Rs 14,82,096 along with tax demand and tax interests for alleged availment and utilisation of excess ITC for FY 2018-19.
Vodafone refuted the GST demand of excess ITC utilisation and said “The company does not agree with the order and will take appropriate action for rectification or reversal of the same.”
Bombay Dyeing Receives Notices Worth Rs 95 Lakh
Wadia Group-led Bombay Dyeing got demand order from the Excise and Taxation Officer, Gurugram, of Rs 95,68,375 for mismatch in input tax credit claimed as per the books and as per the GST portal qnd short payment of tax.
Bombay Dyeing plans to challenge the GST order. “We will file an appeal before Appellate Authority as the ITC claimed as per the books are in accordance with the law. There is no material impact on the financial operations of the company," said Bombay Dyeing.
On April 10 HDFC Life Insurance was served GST order from the Deputy Commissioner State Tax, Dehradun, in the matter of erstwhile Exide Life Insurance Company Limited. This order will have no adverse material impact on the financial operations of the company and the same shall be further contested by the company by way of an appeal before the Appellate Authority," HDFC Life said in a statement.
