WeWork India Receives GST Order of Rs 26 Crore Over Alleged Excess ITC Claim

WeWork India Receives GST Order of Rs 26 Crore Over Alleged Excess ITC Claim

WeWork India Management Limited on Monday informed stock exchanges that it has received a significant GST order worth around Rs 26 crore. The order relates to the period from April 2019 to March 2023 and raises issues regarding Input Tax Credit (ITC).

Background of the Case

The GST department found differences between the ITC claimed in GSTR-3B returns and the ITC available in GSTR-2A/2B. Based on this, the department claims that WeWork has claimed and utilised excess ITC. The department also mentioned that the company has claimed ineligible ITC. As a result, the department issued an order for the demand and recovery of ITC amounting to Rs 13,43,72,624 (including IGST, CGST and SGST).

Apart from this, the department also levied an equal penalty under the relevant provisions of the HGST Act, 2017, read with section 20 of the IGST Act.

Key Details of Order

Company’s Next Step

WeWork India has stated that the order does not consider the facts of the case. The company has decided to challenge the order. It plans to file an appeal before the Commissioner (Appeals) CGST Gurugram within the allowed time.

Financial Impact

The company clarified that it does not expect any major financial impact. on its financials, operations, or any other activities at this stage.

Company’s Disclosure Compliance

The above disclosure was made by WeWork India to both the stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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