Real estate firm Sunteck Realty Ltd on Friday disclosed that it has received a show-cause notice from the Department of Goods and Services Tax for FY23, involving a demand of ₹59.44 crore, including interest and penalty."Sunteck Realty Limited has received a SCN under section 73 of the GST Act from the Department of Goods and Services Tax for the Financial Year 2022-23 for tax liability on procurement of Transferable Development Rights from the open market, which was originally granted by Local Bodies, aggregating to ₹59,43,79,402/- ," according to a stock exchange filing.
The notice relates to the company’s procurement of Transferable Development Rights from the open market, which were originally granted by local bodies. The company said it believes no GST is applicable to such transactions as they do not constitute a supply of goods or services and are therefore outside the scope of GST.
The company said it will file a reply before the Office of the Deputy Commissioner of State Tax, Mazgaon, Mumbai, disputing the demand. Sunteck also said the notice has considered an amount that is twice the actual amount. It added that the notice was issued despite a detailed, comprehensive audit for the financial year already having been concluded by the tax authorities.
Sunteck said it was studying the notice and evaluating its compliance obligations. It added that it will take all necessary action to present and defend its case before the adjudicating authorities. Shares of Sunteck Realty Ltd ended at ₹282.25, down by ₹1.90, or 0.67%, on the BSE.