Court says no to ₹2,237 crore GST demand from Larsen & Toubro

Larsen & Toubro announced on Tuesday that the Bombay High Court has nullified a GST demand of ₹2,237 crore imposed on the company.

"The company had filed a writ petition in the Bombay High Court against the show-cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai, towards service tax demand of ₹2,237 crore, on an erstwhile subsidiary, in respect of tax already paid by the company with respect to certain transactions undertaken post demerger," L&T said in an exchange filing.

The high court this week approved the writ petition filed by the company and nullified the show-cause notice issued by the GST authorities.

Rise in net  profit

Last month, Larsen & Toubro reported a 12 percent increase in net profit for the first quarter of FY25, which was slightly below expectations, as the company's revenue from operations grew by 15 percent in the April-June period.

Driven by higher revenues, L&T's net profit rose to ₹2,786 crore in the three months ending June 30, up from ₹2,493 crore a year earlier, though slightly below the estimated ₹2,876 crore. Its revenues increased by 15 percent to ₹55,120 crore, surpassing the forecast of ₹52,518 crore.

                                                       (By arrangement with livemint.com)