Less GST was paid due to complexities: GMR

GMR has said that it paid less Goods and Services Tax (GST) than required by Maldives Inland Revenue Authority (MIRA) due to complexities that arose from underpayments and overpayments over the four months covered in the MIRA’s assessment.

The company has said that the difference has been paid in full within the period requested by MIRA.

A tax assessment conducted by MIRA revealed that GMR paid MVR131,583 less than it was required to pay as GST for the period from October 2011 to January 2012.

In a statement sent to Sun Online to clarify the matter, GMR highlighted that the amount in question is less than one percent of the total GST paid by GMR during the period.

GMR explained that airport businesses are complex, and represents a combination of multiple businesses operating together in multiple currencies – which means that some of the goods and services get taxed in a very complex manner which can raise ambiguity.

“For example, during the period (October 2011 - January 2012) of assessment by MIRA, the number of transactions at GMR Male International Ltd. (GMIAL) on which GST was applicable was more than 38,000. Many of these transactions carried both taxable as well as tax exempt items which needed to be interpreted correctly and separated for the computation of amount of GST payable,” GMR explained in the statement.

GMR noted that ”the difference of MRf 131,671 in GST was paid to MIRA in full without any objections within a month of it being brought to our notice by the authorities.”

Indian media reported in October that checks were conducted on all GMR offices located in India by the Indian Tax Office, following suspicions that the company tried to evade tax.