Bangalore, January 30, 2025 – SOBHA Limited (BSE: 532784, NSE: SOBHA) has received an order from the Joint Commissioner of Central Tax and Central Excise regarding a GST audit conducted for the period from July 2017 to March 2020, amounting to
₹10.76 crore in tax and penalties.
Regulatory Action Details
- Authority: Joint Commissioner of Central Tax and Central Excise, Bengaluru, Karnataka.
- Nature of Action: Issued under Section 74 of the CGST Act following a GST audit under Section 65.
- Date of Order Receipt: January 29, 2025.
Alleged Violations & Penalties
The Central GST department has cited multiple issues in the order, including:
- Ineligible Input Tax Credit (ITC) availed.
- Nonpayment of GST under the Reverse Charge Mechanism (RCM) on services received from government authorities.
- GST not levied on maintenance services provided to project associations.
- Tax Demand: ₹1,41,00,970
- Penalty: ₹9,35,21,287
- Total Impact: ₹10,76,22,257
Company’s Response & Financial Impact
SOBHA Limited has stated that it is preparing to
file an appeal before the Commissioner of Appeals (GST) within the prescribed timelines, asserting that it has
legal and factual grounds to challenge the order. The company is also
assessing the financial implications of the order but has clarified that
there is no impact on its operations or other activities.
