Godrej Properties Faces GST Demand & Penalty Notices, Stock Dips Slightly

Godrej Properties, a prominent real estate developer in India, saw a minor dip in its stock price on October 16 after its subsidiary, Godrej Redevelopers (Mumbai) Private Limited (GRMPL), received GST demand and penalty notices. At 10:30 am, the company's stock was trading at Rs 1,683, down by 0.3% percent, on NSE.

GRMPL received an order from the additional commissioner of Central Goods and Services Tax and Central Excise, Navi Mumbai, on October 13. The order demanded Rs 48.31 crores in GST, along with interest and an equal penalty under Section 122(2)(b) of the Central Goods and Services Tax Act, 2017. This demand notice pertains to alleged non-payment of GST in connection with one of GRMPL's projects in Mumbai.

Godrej Properties assured that they would challenge the order through the appropriate legal channels and clarified that this development would not have a significant impact on the company's finances or operations.

Recently, the company made headlines with the opening of 'Taj The Trees' at their flagship project, 'The Trees' in Vikhroli, Mumbai. This luxury hotel, fully owned by Godrej Properties, will be operated by the Indian Hotel Companies Limited (IHCL) as a Taj hotel.

In September, the real estate developer announced the acquisition of a land parcel spanning approximately 109 acres in Nagpur, where they plan to develop plotted residential units, offering an estimated saleable area of 2.2 million square feet, as per regulatory filings.

The Godrej Properties stock has ben on a declining trend for the last three consecutive trading sessions and had shed nearly 3% in last three days.