The Great Eastern Shipping Company Limited disclosed that its wholly owned subsidiary, Greatship (India) Limited (GIL), received eight review notices under Section 25 of the Maharashtra Value Added Tax (MVAT) Act, 2002.

The notices were issued by the Joint Commissioner of State Tax, Mumbai, on September 28, 2026. The authority proposes to review appeal and rectification orders passed by the Deputy Commissioner of Sales Tax (Appeals) for financial years 2013-14, 2014-15, 2016-17, and April 2017 to June 2017.

Scope of Tax Review

The core issue involves the treatment of charter hire revenue from vessels and rigs. The Joint Commissioner seeks to examine whether exemptions granted under the Central Sales Tax (CST) Act were correctly applied and if charter hire revenue was taxed at the appropriate rates under the MVAT Act.

GIL has been requested to submit written objections against the proposed order of review. The company stated it will attend the matter and file its objections in due course.

Financial Implications

The filing clarified that the review notices have not yet computed a specific tax liability or demand. Consequently, the aggregate tax liability on GIL, if any, may or may not exceed the materiality threshold specified under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

If the review results in an adverse order, the Joint Commissioner proposed charging consequential interest and imposing penalties as provided under Section 9(2) of the CST Act read with Section 30 and Section 29 of the MVAT Act.

The Great Eastern Shipping Company Limited has entered into a contract to acquire a new-building Suezmax Tanker of about 157,000 dwt. The vessel will be constructed in the Far East by one of the world's leading shipbuilders and is scheduled for delivery in the second half of FY29.

This acquisition is part of the company's strategy to expand its fleet. The current owned fleet comprises 40 vessels aggregating 3.24 mn dwt, operating at a capacity utilization close to 100%.

Fleet composition and expansion plans

The company's existing fleet includes 25 Tankers and 15 Dry Bulk Carriers. The Tanker segment consists of 5 Crude Tankers, 16 Product Tankers, and 4 LPG Carriers. The Dry Bulk segment includes 2 Capesize, 10 Kamsarmax, 1 Ultramax, and 2 Supramax vessels.

In addition to the new Suezmax order, the company has contracted to buy two secondhand Kamsarmax Dry Bulk Carriers. These transactions are expected to be completed in Q3FY27.

Financing and operational context

The company stated that the vessel is proposed to be financed from internal accruals. The high capacity utilization of nearly 100% indicates strong demand for the company's shipping services, necessitating fleet expansion to maintain growth.

What the numbers show

The decision to finance the new tanker through internal accruals, combined with the near-full utilization of the existing 3.24 mn dwt fleet, suggests the company is leveraging strong cash flows to expand without immediate external debt reliance. This approach aligns with the strategic need to add capacity in a market where the current fleet is fully deployed.