NIIT Limited has disclosed receiving a Goods and Services Tax (GST) demand order worth ₹1.81 crores from tax authorities for the Financial Year 2021-22. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GST Demand Order Details

The company received the demand order on December 24, 2023, from the Deputy Commissioner of State Tax, Nodal-06, Bandra-West, Mumbai, Maharashtra. The order carries financial implications for the company.

Nature of Alleged Violation

The disallowance is primarily attributed to differences in GST credit appearing in GSTR-3B versus GSTR-2A filings for Financial Year 2021-22. This discrepancy between the two GST return forms has led to the tax authorities questioning the company's GST credit claims during the specified period.

Company's Response and Assessment

NIIT Limited has conducted its own assessment of the demand order and concluded that the aforesaid demand is not maintainable. The company's evaluation suggests that the tax authorities' position may lack proper justification or legal basis.

The company plans to appeal against the order, indicating NIIT's intention to challenge the tax authorities' decision through appropriate legal channels.

Impact Assessment

Despite the amount involved, NIIT Limited has stated that it does not anticipate any material impact on its financials, operations, or other activities. This assessment reflects the company's position on the demand order.

The disclosure demonstrates NIIT's commitment to transparency and regulatory compliance by promptly informing stakeholders about this development.

NIIT Limited has received a favorable resolution in its GST assessment proceedings, with tax authorities issuing an order with nil demand that concludes a case initially involving ₹4.15 crore. The company informed stock exchanges about receiving the assessment order from the Assistant Commissioner of State Tax, Ward 203, Zone-11, Delhi.

GST Assessment Details

The assessment order pertains to proceedings under section 73 of CGST Act, 2017, which have now been dropped by the tax authorities. The case originated from a Show Cause Notice (SCN) received by NIIT Limited, which the company had previously disclosed to exchanges.

Original Tax Demand Breakdown

The initial Show Cause Notice for FY2021-22 had demanded a total of ₹4.15 crore from NIIT Limited, broken down across multiple components. The demand arose due to various GST credit-related discrepancies identified by tax authorities.

Nature of Violations Alleged

The GST authorities had raised concerns regarding several credit-related mismatches in NIIT's tax filings for FY2021-22. The violations included:

• Difference in credit appearing in GSTR-3B versus GSTR-2A
• Credit availed from ISD (Input Service Distributor) taxpayer and credit appearing in GSTR-2A
• Mismatch in tax declared in Annual Return

These discrepancies had prompted the tax authorities to issue the Show Cause Notice seeking explanations and demanding the substantial amount.

Impact and Resolution

NIIT Limited has stated that no action is required following the favorable assessment order. The company emphasized that there is no impact on its financial, operational, or other activities as the proceedings have been concluded with nil demand. This resolution provides clarity on the GST matter that had been pending.

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (LODR) Regulations, 2015, and SEBI Master Circular by informing both NSE and BSE about this development through its Company Secretary and Compliance Officer, Arpita Bisaria Malhotra.