New Delhi, January 29, 2025 – NTPC Limited (NSE: NTPC, BSE: 532555) has received a demand order from the Superintendent (Adjudication), CGST, Central Excise, Faizabad, Uttar Pradesh, regarding the payment of ₹58.07 lakh, including tax, interest, and penalties, under the CGST Act 2017 for the financial years 2016-17 and 2017-18.
Key Details of the Tax Demand
- Issuing Authority: Superintendent (Adjudication), CGST, Central Excise, Faizabad.
- Total Amount Demanded: ₹58,07,180.
- Tax Component: ₹29,13,590.
- Interest: ₹28,93,590.
- Penalty: As applicable.
- Alleged Violation: Non-payment of Service Tax on water charges.
- Order Date: January 22, 2025.
- Date of Communication to NTPC: January 28, 2025.
NTPC’s Response
NTPC has confirmed that it will challenge the demand by filing an appeal with the first appellate authority within the prescribed timeline. The company emphasized that this order does not materially impact its financials, operations, or other business activities.Market & Compliance Impact
NTPC's financial impact is relatively minor; the case underscores the increasing scrutiny of compliance with indirect tax regulations. Investors will closely monitor NTPC’s next steps and the outcome of its appeal to assess any potential liabilities.This development reinforces the importance of robust tax compliance mechanisms for large corporations operating under multiple regulatory frameworks.