Home / Business and Economy / GAIL Faces ₹143 Cr GST Demand on Guarantees
GAIL Faces ₹143 Cr GST Demand on Guarantees
11 Dec, 2025
Summary
- GAIL received a GST demand order of ₹143.08 crore.
- The demand concerns GST on corporate guarantees for subsidiaries.
- The company's Q2 net profit saw a 17.6% sequential increase.
GAIL India Ltd is facing a significant financial demand, having received a GST demand order of ₹143.08 crore from the CGST, Delhi South Commissionerate. This order alleges non-payment of GST on corporate guarantees provided to banks for its subsidiaries and joint ventures, irrespective of whether any fees were charged.
This development comes shortly after GAIL announced its second-quarter financial results. The state-owned gas utility reported a healthy 17.6% sequential rise in net profit, which climbed to ₹2,217 crore. Revenue for the quarter also showed a marginal increase, standing at ₹35,008 crore, slightly surpassing previous quarter's earnings and analyst expectations.
Despite the GST demand, GAIL's financial performance in the second quarter demonstrated resilience. Revenue and net profit exceeded market predictions, indicating a solid operational quarter. The company's EBITDA also remained competitive, aligning with or surpassing Street estimates, showcasing its continued market presence and financial stability.
