TOTALNSETotal Transport Systems LimitedMediumNeutral
Announced Fri, 20 Mar · 16:43 IST

Total Transport Systems Limited has informed the Exchange about Receipt of Order from GST Authorities

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AI summary

Total Transport Systems Limited has received an order dated December 31, 2025 from the Assistant Commissioner of Central GST & Central Excise, Mumbai East, alleging wrongful claims of Input Tax Credit (ITC) for the period April 2018 to March 2019. The order raises two main issues: ITC claimed from suppliers whose GST registrations were cancelled or who did not file returns, and excess ITC claimed in GSTR-3B returns compared to GSTR-2A. The total demand is ₹63.85 lakh, split equally between tax (₹31.92 lakh) and penalty (₹31.92 lakh). The company plans to file an appeal before the appellate authority and has stated that the demand is not sustainable and will have no material impact on its financials or operations.

Likely market impact

The financial impact is limited — ₹63.85 lakh is a small amount for the company, and management expects no material hit. However, investors should watch the appeal outcome, as an unfavorable ruling could affect cash flows. The delayed disclosure (received in Dec 2025, disclosed in March 2026) may raise minor governance concerns but was attributed to internal assessment under Ind AS 37.