Syngene International Limited announced that the company has received an intimation from the Superintendent of Central Tax, Bangalore South Commissionerate, Bangalore. Nature and details of the action(s) taken, initiated or order(s) passed: Intimation of Tax ascertained under Section 74(5) of the GST Act, 2017. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority: Letter dated June 17, 2024 received on June 18, 2024.

Details of the violation(s)/contravention(s) committed or alleged to be committed: The Department alleged that the company has not paid GST under reverse charge for taxable services received from Electronic City Industries Association, a local authority during the period from fiscal year 2017-18 to fiscal year 2021-22, for security and traffic management services. Based on the above the department has advised the company to pay the tax, interest and penalty payable. The invoices of Electronic City Industries Association has not mentioned explicitly it is a local authority.

The company has not recognized it as a local authority and has therefore not paid GST under the reverse charge mechanism. After verifying the details, the company has decided to pay the GST under reverse charge mechanism together with a penalty of INR 13,670 to settle the matter.