A subsidiary of Godrej Properties receives a Rs 260-crore GST demand order

23 Oct 2023 , 08:08 AM

Tax authorities have issued an order to Godrej Landmark Redevelopers, a subsidiary of Godrej Properties, regarding an alleged failure to pay Goods and Services Tax (GST) on one of the projects the company has constructed.

The order, which includes a GST demand of Rs 129.39 crore along with interest and a penalty of Rs 129.39 crore, was issued by the Additional Commissioner, CGST, Navi Mumbai. The corporation is anticipated to pay approximately Rs 260 crore in total.

Recently, Godrej Landmark Redevelopers and Godrej Properties, a different Godrej Projects Developments affiliate, merged in Mumbai. The order relates to the Godrej Central residential project in the Shell Colony neighbourhood of the Chembur neighbourhood of Mumbai.

Godrej Projects Developments (GPDL) intends to contest the order, but it does not anticipate that doing so will significantly affect the business’s finances, operations, or other undertakings.

‘GPDL will legally challenge the order in the appropriate forum, and its effects on the company’s finances, operations, or other activities will not be materially affected.’ Given the current legal position and relevant precedents, GPDL reasonably expects a good conclusion from the appeal body based on its evaluation and existing legislation, the business stated in a regulatory filing.

The order was issued on October 11 and was received by the corporation on Wednesday.

The Maharashtra government’s municipal planning body, the City and Industrial Development Corporation (CIDCO) also revoked Godrej Properties’s allocation of two nearby Navi Mumbai land lots earlier this week.

The Godrej Group’s real estate development division placed the highest bid for these two plots in the CIDCO e-auction in March 2021. For these plots in the Sanpada neighbourhood of Navi Mumbai, the developer had placed a bid totaling Rs 166 crore.

The project on these about 1.5 acres was estimated to have a development potential of about 4 lakh sq ft, according to the business. It intended to build a complex with a limited amount of high street shops mixed in with luxury residential apartments in a variety of designs.

Godrej Properties reported a 174% year-over-year increase in net profit for the quarter that ended in June, coming from a 251% increase in total revenue of Rs 1,315 crore. The company completed projects totaling almost 4.9 million square feet during the quarter. Additionally, revenue increased by 26% to Rs 1,954 crore, which resulted in a 436% increase in net operating cash flow to Rs 118 crore.

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