IT company LTIMindtree has secured a stay order from the Karnataka High Court concerning a Goods and Services Tax (GST) notice amounting to Rs 378 crore. This notice was issued by the Department of Revenue under the Ministry of Finance. It alleged that the company had failed to pay Integrated Goods and Services Tax on export turnover related to services rendered to international clients.
The notice was formally issued by the Department of Goods and Service Tax, Office of The Principal Commissioner of Central Tax, and The Joint Commissioner of Central Tax in Bengaluru.
In response to the notice, LTIMindtree filed a writ petition on 20 August with the Karnataka High Court, contesting the legality and validity of the GST notice. The court's stay order, issued on 27 August, halts all related proceedings until the next hearing date, which is yet to be set.
In its regulatory filing, LTIMindtree expressed confidence in a favorable resolution based on preliminary assessments, prevailing law, and legal counsel advice.
“Based on preliminary assessment, prevailing law and advice of counsel, the Company expects an ultimate favorable resolution and does not reasonably expect the same to have any material financial impact on the Company,” LTIMindtree said.
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