Order received from the CGST Authority
ARKADE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Arkade Developers has received an order from the Assistant Commissioner (Appeals Thane), CGST Authority regarding a tax demand and penalty. The tax demand amounts to Rs 1,14,62,603 and penalty of Rs 11,46,260 under the CGST Act, 2017. The GST department has disallowed Input Tax Credit for certain transactions for the period FY 19-20, FY 20-21, and FY 21-22. The company states there is no material impact on its financial and operational activities. The company has already filed an appeal and is in the process of obtaining legal opinion.
While the penalty amount of approximately Rs 1.26 crore is relatively small relative to the company's financials, the disclosure indicates a regulatory dispute with tax authorities that investors should monitor, especially given the multi-year nature of the ITC disallowance.