NBCC (India) Ltd receives two GST demand order under Goods and Services Tax

NEW DELHI: State-run Civil construction firm, NBCC (India) Ltd has recently received Orders from CGST authorities regarding the demand of tax along with penalty and interest under the Goods and Services Tax (CGST) Act, 2017.

The First Order is received from Office of the Principal Commissioner of Central Goods & Service Tax, Delhi South Commissionerate.

GST department issued demand along with penalty and interest with respect to Two Overseas work of NBCC. Both the work has been executed by NBCC as PMC in overseas countries and also handed over the project to overseas recipients.

The Total demand includes Penalty for both overseas work is Rs. 79,95,11,842/- along with applicable Interest.

The Second Order is from GSTO, Ward 115, Zone 12.

GST Department issued demand of tax Rs.8,21,75,092/- along with penalty of Rs.82,17,509/- and interest of Rs. 5,52,35,169/- Against SCN issued for FY2021-22.

Following points are raised in order:

1-ITC required to be apportion the eligible ITC in terms of Rules 42 and 43 of the CGST Rules and reverse the proportionate ITC attributable to exempt supplies.

2- ITC reversal required for ITC claimed from cancelled dealers, return defaulters & tax non payers.

The Total demand (Including interest and penalty) is of Rs. 14,56,27,770/-

The Company is in the process of taking of the necessary steps to file an appeal against the orders before the appropriate authority, and it does not anticipate any material impact on its financial, operational, or other business activities as a result