Sunteck Realty Receives GST Demand Notice of ₹59.44 Crore
Sunteck Realty received a GST demand notice of ₹59.44 crore for FY23 regarding TDR procurement. The company disputes the claim, believing no GST is applicable and intends to defend its case. No material financial impact is expected.
The company has stated that it firmly believes the SCN has no merits and that there is no expected material financial impact on the company. This suggests a low impact from the notice.
The company has received a GST demand notice, which is a negative development. However, the company firmly believes the notice has no merit and expects no material financial impact, leading to a neutral sentiment as the outcome is uncertain but the company is confident in its defense.
Sunteck Realty Limited has received a Show Cause Notice (SCN) under Section 73 of the GST Act from the Goods and Services Tax department.
The notice pertains to the financial year 2022-23 and relates to a tax liability on the procurement of Transferable Development Rights (TDR) from the open market, amounting to ₹59,43,79,402 (including interest and penalty).
The company firmly believes the SCN lacks merit, asserting that no GST is applicable to such transactions as they do not constitute a supply of goods or services and are therefore outside the scope of GST. Sunteck Realty plans to file a reply to the notice, disputing the demand and highlighting that the notice incorrectly considers the amount twice the actual figure. Furthermore, the company notes that a comprehensive audit for the said financial year has already been concluded by tax authorities.
Sunteck Realty expects no material financial impact from this SCN and is confident in defending its case before the adjudicating authorities. The company stated that there is no impact on its financial, operational, or other activities arising from this notice.
What to do with a filing like this
Sunteck Realty Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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See the model portfoliosA plain-language summary of a public exchange filing by Sunteck Realty Limited. Read the original for the full detail.