Mumbai, February 28, 2025: NIIT Limited (BSE: 500304; NSE: NIITLTD) announced today that it has received two Goods and Services Tax (GST) demand orders amounting to ₹8.43 crore for discrepancies related to GST credit claims during the financial year 2020-21.
Key Highlights of the GST Demand Orders:
| Particulars | First Demand Order (Gurugram) | Second Demand Order (Mumbai) |
|---|---|---|
| Total Amount | ₹8.11 crore | ₹31.74 lakhs |
| Tax Component | ₹3.86 crore | ₹11.49 lakhs |
| Interest Component | ₹3.86 crore | ₹19.10 lakhs |
| Penalty | ₹39 lakhs | ₹1.15 lakhs |
| Date of Receipt | February 27, 2025 | February 27, 2025 |
| Nature of Discrepancy | Difference in GST credit claims as per GSTR-3B vs. GSTR-2A forms | Difference in GST credit claims as per GSTR-3B vs. GSTR-2A forms |
Financial and Operational Impact:
NIIT Limited has stated clearly that these GST demands are not maintainable based on their assessment. The company is evaluating all available options, including filing an appeal against these orders. Management has indicated that these demands will not have a material impact on the financial position, operations, or overall activities of the company.
Management Commentary:
Arpita Bisaria Malhotra, Company Secretary & Compliance Officer, remarked, "Based on the company's detailed assessment, we firmly believe these GST demands are unwarranted. We will pursue available legal recourse and remain confident that there will be no substantial effect on our operations or financials."
Strategic Outlook:
While the GST demands are significant in terms of absolute numbers, the company's confidence and readiness to appeal indicate robust internal financial controls. Investors will closely monitor the outcome of these appeals, although no immediate concerns have been flagged about NIIT Limited’s compliance practices or financial stability.The company has complied fully with the regulatory requirement of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by promptly disclosing the details of these orders.
NIIT Limited continues to operate with a stable market positioning, reflecting investor confidence amid regulatory developments.