Siemens Ltd has filed a writ petition before the Bombay high court challenging show cause notice (SCN) issued by the GST authority, the company said in a regulatory filing on Monday.
The German engineering and technology conglomerate’s Indian arm has challenged the receipt of the show cause notice proposing to levy GST on leasehold interest in the land located at Worli, Mumbai and freehold interest in the buildings on the property.
The company estimates financial implications due to compensation, penalty etc. at ₹246.95 crore.
The company said it is legally advised that it has a robust case to present in response to the notice.
Shares of Siemens Ltd closed down 0.75% at ₹3,415.85 on Monday on the NSE.
The company has 6,000 people in R&D and related functions in India who work in close collaboration with global engineering teams in locations including the United States, and Germany.
Early this year, Siemens signed a contract worth ₹26,000 crore with Indian Railways to supply and service electric locomotives for freight movement in India.
On October 16, Delta Corp had received a GST notice for short payment of tax to the tune of ₹6,384 crore, taking the overall tax demand on the company to over ₹23,000 crore.
The company had said that the tax demands are arbitrary and contrary to law.
Delta Corp also said that it will challenge them.
DGGI (Directorate General of GST Intelligence) Kolkata on October 13, 2023 had issued an intimation notice on Deltatech Gaming, a subsidiary of Delta Corp, seeking GST of ₹6,236.8 crore for the period January 2018 to November 2022.
On October 8, Reliance General Insurance Company (RGIC), a subsidiary of Reliance Capital Ltd, had received multiple show cause notices from the DGGI, amounting to ₹922.58 crore on the revenue generated from the services like re-insurance and co-insurance.