What is the GST demand against GAIL?

GAIL received a GST demand order of ₹143.08 crore for alleged non-payment of GST on corporate guarantees.

Why did GAIL receive a GST demand order?

The demand relates to corporate guarantees GAIL issued to banks on behalf of its subsidiaries and joint ventures.

How did GAIL perform in its latest financial results?

GAIL reported a 17.6% sequential rise in net profit to ₹2,217 crore and revenue of ₹35,008 crore for Q2.

Home / Business and Economy / GAIL Faces ₹143 Cr GST Demand on Guarantees

GAIL Faces ₹143 Cr GST Demand on Guarantees

11 Dec

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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 Faces ₹143 Cr GST Demand on Guarantees

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.