Blue Dart Express Limited (BSE: 526612, NSE: BLUEDART) has disclosed that it has received an order from the Office of the Commissioner, Central GST, under various provisions of the Central Goods and Services Tax (GST) Act, 2017 and other applicable statutes.
Key Regulatory Update:
Regulatory Body: Office of the Commissioner, Central GST
Nature of Order: Issued under Sections 73(9), 74(9), 127, 129(3), and 130 of the CGST Act, 2017, along with relevant provisions of the Haryana GST Act, Integrated GST Act, and GST (Compensation to States) Act, 2017.
Date of Receipt: February 3, 2025
Alleged Violation: Non-compliance in discharging GST liability under reverse charge mechanism (RCM) for Goods Transport Agency (GTA) services received from transporters.
Financial Impact:
Blue Dart faces an alleged tax demand of ₹11.60 crore, along with an equal penalty of ₹11.60 crore under Section 74(1) for the financial years 2017-18 (from July 1, 2017) to 2021-22. Additional applicable interest is also included in the claim.
Company's Response:
The company is currently analyzing the order and evaluating possible legal and financial options before proceeding further.
Strategic Implications:
The GST liability issue may result in financial obligations and potential legal proceedings that could impact operational cash flows.
Investors and stakeholders will closely watch Blue Dart’s next course of action regarding appeals or settlements.
The development comes at a time when compliance with GST norms remains a critical area for logistics and transportation firms operating in India.
Investor Considerations:
Blue Dart’s stock performance may experience fluctuations as the company navigates this regulatory challenge. Market participants will be keen on updates regarding potential legal recourse and financial provisions for this GST demand.