LTIMindtree Shares Decline After Rs 206 Crore GST Demand

4 Jan 2024 , 01:35 PM

On January 4, LTIMindtree Limited experienced a decline of over one percent in afternoon trading following the revelation that the IT services company had received a tax demand amounting to Rs 206 crore.

The tax demand, issued by the Department of Goods and Service Tax, Mumbai, cited violations that encompassed the denial of zero-rated supply, leading to the imposition of output IGST demand, as well as the disapproval of previously granted refunds. Notably, the order also disallowed input tax credit, which businesses typically use to offset their tax liability when making sales.

As of 1:35 pm, the stock was being traded at Rs 5,857, marking a 1.71% decrease from the previous closing figure on the NSE. Over the past year, LTIMindtree Limited’s stock has shown a remarkable gain of 38 percent, surpassing the performance of other major IT stocks by a significant margin.

In response to the tax demand, LTIMindtree issued a statement via an exchange filing on January 3, expressing its disagreement with the imposed GST demand, interest, and penalties. The company emphasized that, based on a careful assessment of the facts and prevailing laws, it considers the levied amounts to be unjustified. LTIMindtree has announced its intention to pursue an appropriate legal course of action against the order, consulting with its advisors in the process.