Mahanagar Gas Limited has received an Order from Joint Commissioner CGST and Central Excise Mumbai East Commissionerate, confirming GST liability amounting to ₹ 54,32,95,413/- plus applicable interest and 100% penalty for equivalent amount under Section 74(1) of Central Goods and Services Tax Act, 2017 read with corresponding provision of and Maharashtra Goods and Services Tax Act, 2017 read with section 20 of Integrated Goods and Services Tax Act, 2017, according to the Company Exchange filing.
The matter relates to the non-payment of GST under reverse charge mechanism on the reinstatement/ restoration charges paid to the Municipal Corporation of Greater Mumbai and other local bodies under the Mumbai Metropolitan Region Development Authority (MMRDA) for the digging of road to lay an underground pipeline for transportation of CNG/PNG for the period July 2017 to March 2022.
The Company is likely to file an appeal challenging the order before an appellate authority. “Based on the Company’s assessment, an appeal will be filed and the Company is hopeful of a favourable outcome at the appellate level and does not reasonably expect the said order to have any material financial impact on the Company,” the Company said in an exchange filing.
The order dated January 9, 2025, was received by Mahanagar Gas on January 18, 2025.
Source #ET
