Sri Lotus Developers Receives GST Show Cause Notice for FY21, FY22, FY24
Sri Lotus Developers received GST Show Cause Notices for FY21, FY22, and FY24, alleging tax, interest, and penalty liabilities totaling over ₹8.89 crore. The company has paid the tax component under protest and will contest the allegations, expecting no material financial impact.
While the company states there will be no material impact, the potential for significant tax, interest, and penalty could affect future financials if the allegations are not successfully contested.
The company received a Show Cause Notice regarding GST liabilities, which is a negative development. However, the company has paid the tax component under protest, contests the allegations, and expects no material impact, balancing the negative aspect.
Sri Lotus Developers and Realty Limited (formerly AKP Holdings Limited) has received a Show Cause Notice in Form GST DRC-01 from the Office of the Assistant Commissioner of State Tax, Mumbai. The notice pertains to the financial years 2020-21, 2021-22, and 2023-24, under Section 74(1) of the Central Goods and Services Tax (CGST) Act, 2017, and the Maharashtra Goods and Services Tax (M GST) Act, 2017.
The alleged tax liabilities, including interest and penalty, are as follows: For FY 2020-21: ₹3,44,696 (CGST) + ₹3,44,696 (SGST) for tax; ₹3,03,937 (CGST) + ₹3,03,937 (SGST) for interest; and ₹3,44,696 (CGST) + ₹3,44,696 (SGST) for penalty. For FY 2021-22: ₹1,79,17,983 (CGST) + ₹1,79,17,983 (SGST) for tax; ₹1,31,25,777 (CGST) + ₹1,31,25,777 (SGST) for interest; and ₹1,79,17,983 (CGST) + ₹1,79,17,983 (SGST) for penalty. For FY 2023-24: ₹27,976 (CGST) + ₹27,976 (SGST) for tax; ₹9,133 (CGST) + ₹9,133 (SGST) for interest; and ₹27,976 (CGST) + ₹27,976 (SGST) for penalty.
The company has already paid the tax component of these liabilities under protest. Sri Lotus Developers maintains that there are no tax liabilities and no violations of GST Act provisions. The company will submit a response to the Show Cause Notice within the prescribed timeline, contesting the allegations. The company expects no material impact on its financials, operations, or other activities.
What to do with a filing like this
Sri Lotus Developers and Realty Limited filed this with the NSE as a statutory disclosure, categorised under regulatory impact. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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