Sobha Limited has received order from Joint Commissioner of Central Tax and Central Excise, Bengaluru, Karnataka on January 29, 2025. Nature and details of the action(s): Central GST department has issued order under section 74 of CGST Act with respect to GST Audit conducted under section 65 of CGST Act for the Period July-2017 to March-2020. Details of the violation(s) /contravention(s) committed or alleged to be committed: The issues involved in the order passed by the Central GST department includes, ineligible ITC availed, nonpayment of GST under Reverse Charge Mechanism on services received from government authority, GST not levied on maintenance services provided to project associations.
The Company is in the process of filing an appeal before the Commissioner of Appeals (GST), against the said order within the prescribed timelines. The Company has legal and factual grounds to substantiate its case. The Company is in the process of evaluating the implications of these orders on the financial statements.
There is no impact on operations or other activities.
Sobha Limited is an India-based real estate developer. The Company is engaged in the business of real estate construction, development, sale, management and operation of all or any part of townships, housing projects, commercial premises, and other related activities. The Company operates through two segments: Real estate segment, and Contractual and manufacturing segment. Its real estate segment comprises development, sale, management and operation of all or any part of townships, housing projects, also includes leasing of self-owned commercial premises. Its Contractual and manufacturing segment comprises development of commercial premises and other related activities, also includes manufacturing activities related to interiors, glazing and metal works and concrete products. The Company’s residential projects include Sobha Crystal Meadows, Sobha Arbor, Sobha Altus, Sobha Waterfront, Sobha Metropolis, Sobha Lake Edge, Sobha Nesara, Sobha Galera, and other.
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Investor
Investor
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Global
Global
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Quality
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ESG MSCI
ESG MSCI
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