Godrej Properties' subsidiary, Oasis Landmarks LLP, faces a GST demand order of Rs 10.45 crore, along with interest and penalty, totalling Rs 22.54 crore. The order, dated December 31, 2023, alleges non-payment of GST related to turnover in the pre-GST regime, citing denial of input tax credit. Oasis Landmarks LLP plans to contest the order while asserting that the order has no significant impact on the company's finances or operations. Despite the challenge, the subsidiary expects a favourable outcome based on its assessment and current legal positions. Meanwhile, Godrej Properties recently acquired a four-acre land parcel in Yeshwanthpur, Bengaluru, with significant development potential and an estimated revenue of Rs 1,000 crore.
Oasis Landmarks LLP, a subsidiary of Godrej Properties, is facing a GST demand and penalty order totalling Rs 22.54 crore. The order, issued on December 31, 2023, by the Excise and Taxation Officer in Gurgaon (East), Haryana, includes a GST demand of Rs 10.45 crore, interest of Rs 11.04 crore, and a penalty of Rs 1.05 crore under Section 73(9) of HGST/CGST Act, 2017, along with Section 20 of IGST Act, 2017. Allegedly, this pertains to non-payment of GST related to turnover in the pre-GST regime, involving issues such as denial of input tax credit (ITC) due to discrepancies in ITC reported by suppliers and ITC claimed by the LLP, as well as denial of claimed Transitional credit.
Oasis Landmarks LLP intends to contest this order through appropriate legal channels, ensuring compliance with the law. However, the company asserts that this development will not have any material impact on its financials, operations, or other activities. The subsidiary expresses confidence in a favourable outcome from the appellate authority, aligning with their assessment and interpretations of prevailing laws.
It's noteworthy that Godrej Properties, as a leading real estate developer, maintains resilience in the face of legal matters, emphasizing the absence of significant repercussions on its overall business activities. The company's proactive approach in addressing the GST demand aligns with its commitment to navigating challenges while sustaining its momentum in the real estate sector.
With these matters aside, Godrej properties has been on a spree of acquisitions. Most recently, Godrej Properties successfully procured a four-acre land parcel in Yeshwanthpur, Bengaluru. This acquisition boasts a developable potential of around 0.7 million sq ft, with an estimated revenue potential of Rs 1,000 crore. This reflects the company's dedication to strategic growth initiatives in the real estate market.
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