Larsen & Toubro Nullifies ₹2,237 Crore GST Demand
In a recent announcement, Larsen & Toubro revealed that the Bombay High Court has nullified a GST demand of ₹2,237 crore imposed on the company. The company had filed a Writ Petition against the show cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai, pertaining to an erstwhile subsidiary. This notice was in relation to tax already paid by the company for certain transactions undertaken post demerger.
The High Court’s order, received on August 19, approved the Writ petition and nullified the show cause notice issued by the GST authorities, as per the filing. Larsen & Toubro expressed, “We wish to inform that the Company on August 19, 2024, has received an order of the Hon’ble Bombay High Court, allowing the Writ petition filed by the Company and has quashed & set aside the show cause notice issued by the GST authorities.
Additionally, Larsen & Toubro reported a 12 percent increase in net profit for the first quarter of FY25. Despite being slightly below expectations, the company’s revenue from operations grew by 15 percent during the April-June period. With revenues reaching ₹55,120 crore, which surpassed the forecast of ₹52,518 crore, the net profit rose to ₹2,786 crore in the three months ending June 30, up from ₹2,493 crore a year earlier.
S.N. Subrahmanyan, Chairman and Managing Director, commented, “We have achieved steady growth across all financial parameters in Q1 FY 2024-25, despite the geopolitical situation across the globe. Amidst various transformational shifts happening worldwide, we are well-positioned to grasp these opportunities with our expertise in our traditional P&M business and technology-driven new-age businesses.” Subrahmanyan further stated, “To enhance our presence in the Semiconductor sector, we have recently entered into a share purchase agreement with SiliConch Systems, a Bengaluru-based chip design company.
