Oil and Natural Gas Corporation Limited (ONGC), India’s largest oil and gas producer, has been served with a tax demand totaling Rs 6.72 crore by the GST authorities. The demand, which includes recovery of tax, interest, and penalties, relates to the company’s IGST liabilities for specific months in 2017, the company said in an exchange filing.
The tax authorities issued the order under Section 74(9) of the Central Goods and Services Tax (CGST) Act, 2017, citing discrepancies in ONGC’s IGST payments for July, October, and November of 2017. The total demand comprises:
- IGST Recovery: The primary component of the demand is Rs 2.54 crore, which the authorities claim ONGC owes for the three-month period under review. This amount was demanded under Section 74(1) of the CGST Act, indicating serious compliance issues.
- Interest Charges: In addition to the tax recovery, ONGC has been asked to pay Rs 1.64 crore in interest. This charge, under Section 50(1) of the CGST Act, reflects the delay in payment of the IGST amount.
- Penalty imposition: A penalty equal to the amount of tax demanded, Rs 2.54 crore, has also been levied under Section 122(2)(b) of the CGST Act, read with Section 74(1). This penalty underscores the severity of the alleged non-compliance.
The company in its filing said that the GST payment was made on time. However, the delay in appropriation occurred due to technical issues related to the Offshore GST Registration (Other Territory), which was not initially mapped on the GST portal by the concerned authorities. The company further emphasised that the delay had no significant impact, considering the size and scale of its operations.
Source from: https://www.business-standard.com/companies/news/ongc-gst-tax-demand-penalty-bse-6-72-crore-125012200641_1.html
