LTIMindtree falls on Rs 206-crore GST demand

LTIMindtree Limited slipped over a percent in afternoon trade on January 4 after the IT services company said it received a tax demand of Rs 206 crore.

The violations outlined in the order include the denial of zero-rated supply, resulting in the demand for output IGST, and the rejection of previously granted refunds. The order, which came from the Department of Goods and Service Tax, Mumbai, disallowed input tax credit, which a business pays on a purchase and can use it to reduce tax liability when it makes a sale.

At 12.50 pm, the stock was trading at Rs 5,888, down 1.3 percent from the previous close on the NSE. In the past year, the stock has gained 38 percent, the highest by a healthy margin across all major IT stocks.

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“Based on the assessment of facts and prevailing law, the company is of the view that the GST demand amount, interest and penalties levied are unjustified. LTIMindtree will take an appropriate legal course against the said order in consultation with its advisors,” the company said in an exchange filing on January 3.

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