Karnataka HC Grants LTIMindtree Interim Stay on ₹378-Crore GST Demand

28 Aug 2024 , 11:02 AM

LTIMindtree Ltd, an IT services firm, announced on Tuesday, August 27, that the Karnataka High Court has issued an interim stay on a ₹378 Crore GST demand order.

The stay was granted after LTIMindtree filed a writ petition on August 20, 2024, challenging the order from the Department of Goods and Service Tax, Bengaluru, questioning its legality and validity.

The GST demand focuses on the alleged non-payment of integrated GST on export turnover from services provided to overseas clients.

LTIMindtree’s writ petition, filed under Article 226 of the Constitution of India, lists the Union of India and the Principal Commissioner of Central Tax, Bengaluru East, as respondents.

During the hearing on August 27, the Karnataka High Court ruled in favor of LTIMindtree, granting a stay on the proceedings related to the show-cause notice until further notice.

LTIMindtree had previously expressed confidence in a favorable outcome, based on a preliminary assessment and legal advice. The next hearing date has not been set, and the stay will remain in effect until then.

At the time of writing, shares of LTIMindtree is trading at ₹6077 which is a 5.66% gain than the previous close. LTIMindtree has witnessed a 18% gain in the last one year, and 2.95% dip since the beginning of the year.

LTIMindtree Ltd, a subsidiary of Larsen & Toubro, is a Mumbai-based multinational IT services and consulting firm, founded in 1996, and employs over 81,000 people.