Shares of LTIMindtree Ltd hit a 52-week high of Rs 6,020 on 4 January; later, the shares came crashing down and were trading 2% lower after the company received a tax demand of Rs 206 crore.

In its regulatory filing, the company said it has received a tax demand from the Department of Goods and Service Tax, Office of the Deputy Commissioner of State Tax, Mumbai. The violations outlined in the order include the denial of zero-rated supply, resulting in the demand for output IGST, and the rejection of previously granted refunds.

The order that came from the Department of Goods and Service Tax, Mumbai, has disallowed input tax credit that a business had to pay on a purchase and can use it to reduce tax liability when it makes a sale.

The company added, “Based on the assessment of facts and prevailing law, the company is of the view that the GST demand amount, interest and penalties levied are unjustified. LTIMindtree will take an appropriate legal course against the said order in consultation with its advisors.”

According to the company, there is no likely material impact on the company’s financials or operations due to the said order.

At 3:30 pm, the shares of LTIMindtree closed 1.41% lower at Rs 5,877 on NSE.