Sobha receives GST appellate order for Rs. 297.59 million tax; plans GSTAT appeal
Sobha got an order from the Commissioner (Appeals), Central Tax, Kochi, in a GST case on valuation of capital goods supply to distinct persons.
By ScoutQuest · · 1 min read
- Tax demand
- Rs. 297.59 million + interest & penalty
- Payment timeline
- payable in 90 days
- Authority
- Commissioner (Appeals), Central Tax, Kochi
What the company told the exchanges
Sobha Ltd has disclosed an order passed by the Commissioner (Appeals) of Central Tax, Central Excise and Revenue, Kochi, under section 107 of the CGST Act. The order comes in a GST appeal that the Assistant Commissioner, Central Tax & Central Excise, Thrissur had shared against an earlier order of the adjudicating authority, which had gone in the company's favour.
The amount involved
- Tax amount: Rs. 297.59 million, plus applicable interest and penalty.
- Payment is due 90 days from receipt of the order.
- The company received the communication on October 23, 2026.
What the dispute is about
The update says the issue in the order is valuation in the case of supply of capital goods to distinct persons. In simple terms, the tax authority has taken a view on how such inter-unit supplies of capital goods should be valued, and that view has now led to a tax demand.
What the company plans to do
- File an appeal before the GSTAT (GST Appellate Tribunal) within the prescribed timelines.
- It states it has legal and factual grounds to substantiate its case.
- It is in the process of evaluating the implications of the order on its financial statements.
- It states there is no impact on operations or other activities.
How a retail investor might read this
A tax demand of this size is a financial liability to track, but the company has indicated it will contest it further and that business operations are unaffected. What the order finally costs the company will depend on the outcome of the appeal, and the company has said the effect on its financial statements is still being evaluated.
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Final reminder-cum-forfeiture notice on 20,857 partly paid rights shares
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More numbers
- Tax amount in the GST appellate orderRs. 297.59 million
- Due date for payment from receipt of order90 days
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