The Bombay High Court has quashed a ₹2,237 crore GST demand raised against Larsen & Toubro (L&T). The demand stemmed from a service tax issue involving an erstwhile subsidiary of L&T, concerning taxes already paid by the company after a demerger.
L&T filed a writ petition on August 14, 2023, and the High Court's order on August 19 ruled in favor of the company, setting aside the show cause notice. This notice, initially issued in 2018, alleged that various interest charges from 2013-2017 were liable for additional taxes.