DLF Subsidiary Faces GST Order, Plans to Contest Decision

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Gurugram, March 1, 2025 – DLF Limited (NSE: DLF, BSE: 532868) has disclosed that its material subsidiary, DLF Cyber City Developers Limited, has received an order from the Office of the Deputy Commissioner of State Tax (SGST), Gurugram (East), Government of Haryana. The order, issued under the Goods and Services Tax (GST) Act, imposes a penalty of ₹1.05 crore, in addition to a GST demand with interest.

Order Details & Alleged Violation

The action stems from the denial of Input Tax Credit (ITC) on plant and machinery related to both under-construction and operational commercial buildings intended for lease. The order, dated February 28, 2025, was communicated to the company at 7:33 PM on the same day.

DLF’s Stance & Financial Impact

DLF has categorically stated that it does not agree with the order and intends to take appropriate legal action against the ruling. The company further clarified that the penalty will not have any material impact on its financials, operations, or other activities.

This development follows the SEBI Listing Obligations and Disclosure Requirements (LODR) under Regulation 30, mandating the disclosure of material information that may impact shareholders and stakeholders.

Next Steps

While DLF has not yet specified the legal recourse it plans to take, it is expected to challenge the ruling through appropriate judicial forums. Investors will be closely monitoring any updates regarding the appeal process and its potential implications.
 
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