Greatship subsidiary receives eight MVAT review notices on vessel charter-hire tax treatment
As filed · The Great Eastern Shipping Company Limited has informed the Exchange about disclosure of events / information under Regulations 30 of Securities and Exchange Board of India (Listing Obligations and Di
What happened
FactGreatship (India) Limited, a wholly owned subsidiary of The Great Eastern Shipping Company Limited, received eight review notices from the Joint Commissioner of State Tax, Mumbai. The notices propose review of prior appeal or rectification orders relating to vessel and rig charter hire, CST exemptions and applicable tax rates for FY 2013-14, FY 2014-15, FY 2016-17 and April 2017 to June 2017; GIL plans to submit written objections.
Why it matters
CapitSignal interpretationLitigation creates a contingent liability that is not in reported profit until it crystallises.
What management said before
Prior statements by this company that CapitSignal has recorded changing.
Capex
DelayedThe company had contracted to buy the vessel in Q1 FY27.
Additionally, the company has contracted to sell one Very Large Gas Carrier 'Jag Vishnu', and this sale transaction is expected to be completed in Q4 FY26.
Change
FactImplication
CapitSignal interpretationWatch next
Fact- Amount claimed against the company
- Whether a provision has been made
- Next hearing or order date
- The Company has contracted to buy an Ultramax dry bulk carrier of about 63,500 dwt on October 30, 2025. (management committed by Q4 FY26)
- The 2015 built vessel is expected to join the Company’s fleet in Q3 FY27. (management committed by Q3 FY27)
Evidence
- The Great Eastern Shipping Company Limited has informed the Exchange about disclosure of events / information under Regulations 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.(opens the original filing in a new tab)
- Earlier statement · Q1 FY27
- Latest statement · Q1 FY27
- Earlier statement · Q4 FY26
How CapitSignal classified this
- Reasoning:
- No tax liability or demand has been computed, but a review could result in tax, consequential interest and penalties. The company says any aggregate tax liability may or may not exceed its SEBI materiality threshold.
- Matched on:
- the filing's own subject line
- Confidence in the event type:
- 75%