Many large companies to move Appellate Authority against GST demand notices

Many large companies that have received GST demand notices have decided to file an appeal with the Appellate Authority.

In recent days, an increasing number of GST notices have been sent to many companies mainly on account of alleged discrepancy in input tax credit (ITC).

ICICI Lombard General Insurance Company Limited said it 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 1,478,606.

“The company would pursue an appeal with the Appellate Authorities and evaluate other legal options against the order,” ICICI Lombard said.

The order has 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.

Vodafone Idea said it received an order under the Central Goods and Services Tax Act, 2017, confirming a penalty of Rs 14,82,096 along with tax demand and interest as applicable. The order has been issued for the alleged availment and utilisation of excess ITC for FY 2018-19.

“The company does not agree with the order and will take appropriate action for rectification or reversal of the same,” Vodafone Idea said.

Bombay Dyeing said it received an order from the Excise and Taxation Officer, Gurugram, for a demand of Rs 95,68,375.

The order was issued for mismatch in input tax credit claimed as per the books and as per the GST portal, short payment of tax in GSTR-3B, and short payment of tax under RCM as compared to GSTR2A and GSTR-3B, Bombay Dyeing said.

“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,” Bombay Dyeing said.

HDFC Life Insurance said the company received a GST order from the Deputy Commissioner State Tax, Dehradun, in the matter of erstwhile Exide Life Insurance Company Limited on April 10.

“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.

Rallis India, a Tata enterprise, said the company received 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.