LTIMindtree Secures GST Relief as Karnataka HC Issues Interim Stay on ₹378-Crore Demand

Bengaluru, August 27, 2024 – LTIMindtree Ltd, a leading IT services provider, has been granted a significant legal reprieve by the Karnataka High Court, which has issued an interim stay on a contentious ₹378-crore GST demand order. The relief comes after the company challenged the demand in court through a writ petition filed on August 20, 2024.

The dispute centers around an alleged non-payment of integrated GST on export turnover related to services provided by LTIMindtree to international clients. The Department of Goods and Service Tax (GST) in Bengaluru had issued the demand order, prompting LTIMindtree to question its legality and validity. The writ petition, lodged under Article 226 of the Indian Constitution, names both the Union of India and the Principal Commissioner of Central Tax, Bengaluru East, as opposing parties.

In a hearing on August 27, the Karnataka High Court ruled in favor of LTIMindtree by issuing an interim stay on the proceedings related to the show-cause notice. This stay will remain effective until further notice, providing temporary relief from the financial strain of the substantial demand.

LTIMindtree had previously expressed optimism about a positive outcome, supported by preliminary legal assessments and advice. The company’s legal team has been preparing to address the core issues raised by the GST demand.

The next hearing date for the case is yet to be scheduled. In the meantime, the stay on the demand order ensures that LTIMindtree will not be required to make the contested payment while the legal proceedings continue.

This development marks a pivotal moment for LTIMindtree, as it navigates through complex tax regulations and their implications for its international operations.

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