L&T Challenges ₹173.24 Crore GST Penalty Over Tax Discrepancies

2 Dec 2024 , 01:01 PM

Larsen & Toubro (L&T) has been imposed a penalty of ₹173.24 crore by the Joint Commissioner, CGST, and Central Excise, Bhopal, for the years 2017-18 to 2021-22. The discrepancy arises between the financial statements of L&T and GST returns pertaining to non-taxable transactions, and claims for input tax credits.

Thereupon, the order dated 27 November 2024, issued under Section 122 of the Central Goods & Services Tax (CGST) Act, 2017, reached the respondent on 28 Nov 2024. With that, L&T wants to appeal before the said appellate authority with hopes and optimism that it will pass a favorable order.

The company said the penalties stem from technical differences in interpretation and not from any intent to evade taxes. Clarifies that it has given enough explanations to the tax authority and believes that the matter is mainly procedural. Managements said that the imposition of penalties will not make any material difference to its financial health or daily affairs.

L&T is upbeat about the appellate process. It believes that the matter will be resolved without too much of an impact on the company.
The firm reaffirmed its commitment to obey and act transparently in every tax matter.