Company to Challenge Demand of ₹2.03 Crore Plus Penalty
Ahmedabad, February 4, 2025 – Nila Infrastructures Ltd. has disclosed an update under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, regarding a Goods and Services Tax (GST) Demand Order received from the Office of the Additional Commissioner – Central GST Ahmedabad South.
Key Developments:
Regulatory Authority: Office of Addl. Commissioner – Central GST Ahmedabad South.
Nature of Order: Demand Order under Section 74(9), 50(3), and 122(1)(viii) of the CGST Act, 2017, read with Section 74 and/or 122 of the Gujarat GST Act, 2017, and Section 20 of the IGST Act, 2017.
Date of Order Issuance: January 27, 2025.
Date of Receipt: February 4, 2025 (received via speed post at 15:00 p.m.).
Violation Alleged: Disallowance of Input Tax Credit (ITC) availed.
Financial Impact: ₹2.03 crore in tax liability, along with an equivalent penalty and applicable interest.
Company's Response:
Nila Infrastructures Ltd. is currently reviewing the demand order and intends to challenge it through an appeal process. The company has sought expert consultation and has affirmed that there is no material impact on its financial or operational activities beyond the stated monetary amount.
Investor Considerations:
While the demand order represents a financial liability, the company’s proactive approach in seeking legal recourse indicates a strategic effort to mitigate the impact. Investors are advised to monitor further disclosures as the appeal progresses.