Petronet LNG faces ₹284 crore GST show cause notice, challenged in court

Legal
Gas

Blacklitt Research30 October 20262 min read

Petronet LNG (NSE: PETRONET) has filed a writ petition in the Gujarat High Court against a show cause notice from the Directorate General of GST Intelligence, Delhi Zonal Unit, it said in a filing on 30 Oct 2026. The notice proposes recovery of ₹283.72 crore of GST on use or pay charges, along with interest and equivalent penalty.

Key highlights

Proposed GST recovery: ₹283.72 crore, excluding interest and penalty
FY 2022-23 and FY 2023-24: ₹262.61 crore
FY 2024-25: ₹21.11 crore
Writ petition filed on 30 Oct 2026

The notice in numbers

Item	Detail
Issuing authority	Directorate General of GST Intelligence, Delhi Zonal Unit
Court	High Court of Gujarat
Subject	GST on use or pay charges
GST proposed for recovery	₹283.72 crore, plus applicable interest and equivalent penalty
FY 2022-23 and FY 2023-24	₹262.61 crore
FY 2024-25	₹21.11 crore
Writ petition filed	30 Oct 2026

What the notice proposes

The show cause notice proposes recovery of GST amounting to ₹283.72 crore, along with applicable interest and equivalent penalty. Of this, ₹262.61 crore relates to FY 2022-23 and FY 2023-24, and ₹21.11 crore relates to FY 2024-25.

The notice concerns GST on use or pay charges. Use or pay arrangements are contracts under which a customer pays for pipeline or terminal capacity whether or not it is used.

The company's challenge

Petronet LNG says it has filed the writ petition on 30 Oct 2026 and is of the view that the GST amount, interest and penalties levied are unjustified. The company says there is no likely material impact on its financials or operations due to the writ petition or the notice.

The filing does not give the grounds of the challenge, any hearing date, or whether the High Court has admitted the petition or passed any order.

What the GST notice means for Petronet LNG's shareholders

The notice is a claim against the company, not a completed demand. The company's view, as stated in the filing, is that the levy is unjustified and that it expects no likely material impact on its financials or operations.

Not stated: the interest and penalty amounts, the grounds of the challenge, whether any part of the GST has been paid or deposited, and how the company has provided for the claim. No hearing date or court timeline is given.

Reference: Original filing (PDF)

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