PLPetronet LNG532522Show cause notice

Writ petition shared against GST show cause notice on Use or Pay Charges; SCN proposes ₹283.72 crore

Petronet LNG shared a writ petition in the Hon'ble High Court of Gujarat against a show cause notice from GST intelligence on Use or Pay Charges.

By ScoutQuest · Fri 30 Oct 2026, 6:00 PM IST · 1 min read

GST recovery proposed in SCN

₹283.72 crore

GST for FY 2022-23 and FY 2023-24

₹262.61 crore

GST for FY 2024-25

₹21.11 crore

What happened

Petronet LNG has shared a WRIT petition on 30th October 2026 in the Hon'ble High Court of Gujarat. The petition is against a Show Cause Notice (SCN) issued by the Directorate General of GST Intelligence, Delhi Zonal Unit. The dispute is about GST on Use or Pay Charges. The company informed the stock exchanges of the matter under the litigation disclosure requirement.

What the notice asks for

• The SCN proposes recovery of ₹283.72 crore of GST.
• Of this, ₹262.61 crore relates to FY 2022-23 and FY 2023-24.
• ₹21.11 crore relates to FY 2024-25.
• Applicable interest and an equivalent penalty are also proposed, so the total claim would run higher than the GST figure alone.

The company's position

Petronet LNG states that, based on its assessment of facts and the prevailing law, the GST amount, interest and penalties are unjustified. It has said there is no likely material impact on its financials or operations because of the writ petition or the SCN.

Points a retail investor can track

• A show cause notice is the tax authority's formal demand proposal, not a final order. The company has taken the matter to court and is contesting it.
• The headline number to keep in view is the ₹283.72 crore of GST proposed, with interest and an equivalent penalty on top of it.
• The company's own stated view is that the demand is unjustified and that it does not expect a material hit to financials or operations.
• How the petition proceeds in the Hon'ble High Court of Gujarat is the next thing to watch.

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