Petronet LNG Receives GST Demand Order of ₹33.68 Crore for FY 2020-21

Sandip Raj Gupta

25/Feb/2025

What's covered under the Article:

GST Demand Order: Petronet LNG receives a tax demand of ₹33.68 Cr, including penalties & interest.
Alleged Violations: Under-declared outward supplies, excess ITC claims, & ineligible ITC.
Company Response: Petronet LNG deems the order unjustified & will pursue legal remedies.

Petronet LNG Receives ₹33.68 Crore GST Demand Order for FY 2020-21

New Delhi, February 25, 2025: Petronet LNG Limited has received an order from the Department of Goods and Service Tax, Office of the Sales Tax Officer Class II, New Delhi, under Section 73 of the Goods & Services Tax Act, 2017, raising a tax demand of ₹33,68,34,496/- for FY 2020-21. The demand includes:

Tax component
Interest of ₹13,57,05,629/-
Penalty of ₹1,82,84,443/-

Key Issues Raised in the GST Order

✔ Under-declaration of outward supplies in GSTR-1 vs GSTR-7
✔ Excess ITC claims
✔ Ineligible ITC under-declaration

Company's Response & Next Steps

Petronet LNG has assessed the facts and applicable legal provisions, concluding that the GST demand, interest, and penalties are unjustified. The company has decided to pursue legal recourse in consultation with tax advisors.

✔ Financial Impact: The company believes the order will have no material impact on its financials or operational activities.
✔ Legal Action: Petronet LNG will challenge the order through appropriate legal proceedings.

Rajan Kapur, Company Secretary, Petronet LNG Limited, stated:
“We strongly believe that the GST demand order is unjustified and will be pursuing legal options to challenge it. Our operations remain unaffected, and there will be no significant financial impact on the company.”

About Petronet LNG Limited

Petronet LNG Limited is a leading energy company in India, engaged in LNG import, regasification, and distribution. It operates major terminals at Dahej, Gujarat & Kochi, Kerala, contributing to India's energy security.

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