Details of the Authority and Order
- Name of Authority: Joint Commissioner, LGSTO 065, Bengaluru; DGSTO-6, Bengaluru, Karnataka.
- Nature of Order: A demand order was issued under the CGST/KGST Act, 2017 for the Financial Year 2020-21.
- Date of Receipt: The Company received the appellate order (in Form GST APL-04) on 17th August 2026.
Details of Alleged Violations
The GST authorities alleged two primary contraventions:
1. Short declaration and payment of GST liability due to differences between outward supplies reported in GSTR-1 and the tax liability discharged in GSTR-3B, which included export transactions.
2. Excess availment of Input Tax Credit (ITC) in relation to Reverse Charge Mechanism (RCM) transactions.
Proceedings were initiated under Sections 73 and 50 of the CGST/KGST Act, 2017.
Financial Impact of the Order
Pursuant to the appellate order, a total demand of ₹18.28 crore has been determined against the Company. This is broken down as follows:
- Tax: ₹8.81 crore
- Interest: ₹8.59 crore
- Penalty: ₹0.88 crore
This order pertains to a disputed amount that had originally aggregated to ₹31.72 lakh (Tax: ₹16.63 lakh, Interest: ₹13.36 lakh, Penalty: ₹1.73 lakh).
Company's Response and Outlook
The company is currently examining the implications of the order and evaluating the further legal remedies available under the GST laws.
The disclosure states that the order is not expected to materially impact the Company's operations. Any financial impact would be subject to the outcome of further appellate proceedings.