Subsidiary Faces Tax Demand Over Input Tax Credit Availment for Financial Years 2020-21 and 2022-23

<h1>Subsidiary Faces Tax Demand Over Input Tax Credit Availment for Financial Years 2020-21 and 2022-23</h1>

RCCPL Private Limited, a wholly owned material subsidiary of Birla Corporation Limited, is facing a demand cum show cause notice from the Joint Commissioner, Central Goods & Service Tax (CGST) &amp; Central Excise, Nagpur-I Commissionerate. The dispute relates to the alleged wrongful availment of Input Tax Credit (ITC) for the financial years 2020-21 and 2022-23.

The notice was issued under Section 74(1) of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017. The allegation centers on a negative balance reflected in Table 8D of GSTR-9 for these two financial years.

The quantum of claims involves an amount of ₹10,30,06,338, along with equivalent penalty and applicable interest.

Dispute Details​

A summary of the litigation details and its financial implications is provided below:

Operational Impact and Company Stance​

Regarding the financial implications, RCCPL stated that there is no impact on the financial, operations or other activities of the company. The subsidiary noted that the demand-cum-show cause notice lacks merit and is maintainable, as it is based solely on the differential ITC reflected in Table 8D of GSTR-9.

RCCPL has indicated that it has received a favorable order in a similar tax matter and is currently in the process of submitting its reply within the prescribed timeframe.

BIRLACORPN Stock Price Movement​

As the market approaches close at 2:59 PM, Birla Corporation Limited shares are edging higher today, gaining 0.89% and currently trading at ₹906.15 in live activity. The stock has seen significant interest with 21,843 shares traded so far in this current session.