The latest development in the Indian telecom sector is a battle of statements between market runner-up Airtel and a central GST commissioner. It all began on Friday when the office of the commissioner of the central goods and services tax (GST) at the Delhi South Commissionerate slapped a penalty order on Bharti Airtel to the tune of Rs 2.11 crore under the CGST Act 2017. The carrier responded with a regulatory announcement on Saturday.
Airtel, in the announcement, said that the penalty was issued alleging irregular input tax credit from FY 2017-2018 to FY 2020-2021.
The company mentioned that it “does not agree with the order and will take appropriate action(s) for the same”, assuring that such a fine would have no material impact on Airtel’s financials, operations, and other activities.
Input tax credit issue mars one more major Indian company—Mahindra
Airtel was not the only major name in the Indian stock market that GST officials took aim at on Friday. GST state tax officer in Tamil Nadu, along with other officials, conducted an inspection of the records of Mahindra and Mahindra in Chennai and advised the automaker to submit the necessary documents for reconciliation.
“Based on the company’s initial assessment, [Mahindra and Mahindra] does not reasonably expect the outcome of the proceedings to have any material impact on the company,” it announced through a regulatory statement.
Among the records that GST officials demanded were also input tax credit claims by Mahindra and Mahindra, along with those pertaining to transactions of supply of goods or services, including payment under reverse charge, it stated.
