ZEEL gets GST notice of Rs 16.60 million for ineligible ITC claims
ZEEL believes the case has merit and will appeal within three months under the TNGST Act. The company assured investors that the order will not materially impact its financials or operations.
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Zee Entertainment Enterprises Ltd. (ZEEL) has received GST notice from the Commercial Tax Officer, Chengalpattu, Tamil Nadu. The order demands INR 0.40 million (including penalty) for ineligible Input Tax Credit (ITC) claims, along with INR 16.56 million in interest for excess ITC availed between July 2017 and March 2018.
ZEEL believes the case has merit and will appeal within three months under the TNGST Act. The company assured investors that the order will not materially impact its financials or operations. The violation stated reads GST demanded towards excess ITC claimed in GSTR-3B.
ZEEL in its disclosure to stock exchanges stated that they have received a GST Order passed under Section 74, of TNGST/CGST/IGST Act, 2017 determining tax payable under GST of INR 0.40 million (including penalty) on ineligible ITC claimed and interest towards discrepancies arising in excess availment of ITC of INR 16.56 million for the period July 2017 to March 2018.
ZEEL in its filing stated, "The Company believes that there are merits in the case and will take necessary legal recourse under the available law by filing an appeal with three months before the adjudicating authority as per the provisions of TNGST Act. There is no material impact on financial, operations or other activities of the Company."
