Larsen & Toubro (L&T) has been hit with a penalty of Rs. 173.24 crore by the Joint Commissioner, CGST and Central Excise, Bhopal, for the assessment years 2017-18 to 2021-22.
In a regulatory filing, the company informed stakeholders that, on November 28, 2024, it received an order from the Joint Commissioner, dated November 27, 2024, imposing penalties of Rs. 173,24,59,695. The penalties relate to the tax assessments for the years 2017-18 through 2021-22.
The order highlights discrepancies between financial statements and GST returns of L&T, including non-taxable transactions and disputes over the company’s claims for input tax credits and reversals. These issues resulted in the penalties, which were levied under Section 122 of the Central Goods and Services Tax (CGST) Act, 2017.
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As per sources, L&T plans to challenge the penalty by appealing the order to the relevant appellate authority. The company is confident that it will secure a favorable ruling and does not expect the case to significantly impact its financials or operations.
The company also stated its disagreement with the tax demands, citing technical differences in the interpretation of the books and GST returns. L&T suggested that the dispute centers on interpretational issues rather than any intention to evade taxes.
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The Management reassured stakeholders that the ongoing legal proceedings have not affected the company’s operations or financial health.
In the Bombay Stock Exchange, L&T’s shares closed at Rs. 3,725.90, up by Rs. 58.25 or 1.59%.
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