Kolkata, February 1, 2025 – Birla Corporation Limited (NSE: BIRLACORPN, BSE: 500335) has disclosed that its wholly owned subsidiary, RCCPL Private Limited, has received a demand order from the Assistant Commissioner, State Tax, Raebareli, Division-Allahabad, Uttar Pradesh. The order pertains to alleged wrongful availment of Input Tax Credit (ITC) under the GST framework.
Key Details of the Order:
- Tax Demand: ₹2,11,44,681
- Penalty: ₹2,11,44,681
- Interest: Applicable interest on the above demand
- Late Filing Interest for FY 2018-19: ₹5,91,712
- Total Financial Impact: ₹4,28,81,074 plus applicable interest
The demand relates to the alleged incorrect availment of ITC in GSTR-3B returns from
July 2017 to March 2021 and delayed filing of GSTR-3B for
FY 2018-19.
Company’s Response:
Birla Corporation stated that it
does not consider the demand to be maintainable and is in the process of
filing an appeal against the order. Additionally, the company has identified
a calculation error in the order and will file for rectification under
Section 161 of the CGST Act, 2017.
Market Impact & Outlook
While the financial impact amounts to over ₹4.28 crore, the company’s stance on challenging the order suggests that an immediate payout may not be necessary. Investors will keenly watch the outcome of the appeal process.
