Siemens share price increases following a protest of the Rs 246 crore GST levy's show-cause notice.

25 Oct 2023 , 02:01 PM

After the company announced it had filed a writ petition before the Bombay High Court, contesting the show-cause notice (SCN) issued under Section 73 of the CGST Act, 2017, shares of Siemens Ltd. traded 1% higher to Rs 3,442 in the morning of October 25, ending a five-day losing streak on the bourses.

The notice relates to the imposition of GST on the freehold interest in the buildings on the property as well as the leasehold interest in a plot of land in Worli, Mumbai. The anticipated tax and interest consequences of this SCN come to Rs 245.9 crore.

The Ministry of Finance, the Department of Revenue, the State of Maharashtra represented by the Commissioner of State Tax, the Department of Registration and Stamps, as well as the Deputy Commissioner of State Tax from Belapur-502, Raigad Division, Navi Mumbai, who has the authority to issue the SCN, are the parties on the opposing sides of this legal dispute.

Siemens stated in a regulatory statement on October 23 that it has ‘strong advice from counsel’ regarding its ability to fight the matter. The German engineering and technology conglomerate’s stock price has fallen by over 8% on the NSE in the past month.

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