LTIMindtree Receives Interim Stay on GST Refund Dispute

LTIMindtree has secured an interim stay from the Karnataka High Court on a writ petition challenging a GST order related to a refund of input tax credit. The company is contesting a demand of ₹879 million, including tax, penalty, and interest.

Case Details of Tax Dispute

The company informed the stock exchanges that it had filed a writ petition in the Hon’ble High Court of Karnataka challenging the legality and validity of an order issued under Section 74 of the CGST Act, 2017/KGST Act, 2017 by the Principal Commissioner of Central Tax.

The order led to the denial of the benefit of zero-rated supply and the recovery of a refund of input tax credit, which the company deems erroneously granted.

The petition, filed on December 9, 2024, came up for hearing on December 17, 2024, where the court granted an interim stay on the proceedings related to the order.

The company remains hopeful of a favourable resolution, and based on a preliminary assessment and legal advice, it does not expect any material financial impact from the case.

The dispute involves a demand of ₹879 million, consisting of ₹439 million in tax, ₹440 million in penalty, and applicable interest for the period from April 2018 to January 2023.

Share Price Performance

On December 18, 2024, LTIMindtree’s share price traded 1.59% lower, at ₹6,590.25 as of 3:10 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.