Larsen & Toubro (L&T) has secured a significant legal victory as the Bombay High Court has quashed a substantial GST demand of Rs 2,237 crore raised against the company.
Key Developments
- Court Ruling: On August 19, 2024, the Bombay High Court ruled in favor of L&T, overturning the GST demand previously issued. This demand was related to a show cause notice issued by the Principal Commissioner of GST and Service Tax, Mumbai, concerning service tax issues tied to transactions conducted by an erstwhile subsidiary post-demerger.
- L&T’s Response: L&T had filed a writ petition challenging the GST notice, asserting that the tax in question had already been paid. The court’s decision upholds L&T’s stance, setting aside the earlier notice.
Recent Financial Performance
- Quarterly Results: L&T reported a 12 percent increase in net profit for the first quarter of FY25, reaching Rs 2,786 crore. This was a slight miss compared to estimates of Rs 2,876 crore.
- Revenue Growth: The company’s revenue from operations surged 15 percent to Rs 55,120 crore, exceeding expectations of Rs 52,518 crore.
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Larsen & Toubro