Alliance Air announces special fares on Chennaijaffna route IGL net profit more than doubles in Q2 on tax cut and higher sales Commerce ministry raises issue of DRI notices to exporters over IGST with Finance Ministry

NEW DELHI: Indraprastha Gas Ltd, the city gas distributor in the national capital and adjoining cities, on Thursday reported more than doubling of its September quarter net profit on lower tax rate and rise in gas sales.

Net profit in July-september at Rs 380.72 crore was 103 per cent higher than Rs 187 crore in the corresponding quarter in the last fiscal, the company said in a statement.

The company availed the lower corporate tax rate announced by the government which resulted in a "gain of Rs 143.12 crore," it said.

Total gross sales value registered a growth of 19 per cent in the quarter to Rs 1,866 crore.

Product-wise, CNG sold to automobiles stood at Rs 1,438 crore, registering a growth of 22 per cent, and piped natural gas recorded sales of Rs 428 crore, registering a growth of 10 per cent over the previous year.

Profit before tax for this quarter rose 27 per cent to Rs 367.65 crore.

IGL sells Compressed Natural Gas (CNG) to automobiles and Piped Natural Gas (PNG) to household kitchens and industries in Delhi and adjoining towns of Noida, Greater Noida, Ghaziabad, Rewari, Gurugram, Muzaffarnagar and Karnal.

"IGL registered an overall sales volume growth of 12 per cent over the corresponding quarter in the last fiscal, with the average daily sale going up from 5.89 million standard cubic meters per day (mmscmd) to 6.57 mmscmd," the statement said, adding that CNG recorded sales volume growth of 10 per cent, while PNG recorded sales volume growth of 12 per cent.

"The increase in gas volumes have been driven by embracing of clean fuels across all segments," it added.

NEW DELHI: The commerce ministry has taken up the issue of Directorate of Revenue Intelligence (DRI) notices being sent to 1,000 exporters for alleged violation of Goods and Services Tax with its finance counterpart, an official said.

The commerce ministry has stated that the “overzealous revenue collection” move by DRI (Directorate of Revenue Intelligence) was against exporters.

The ministry has demanded integrated goods and services tax (IGST) exemption for inputs used in exports between October 2017 and January 2019, the official said.

In a letter to the Department of Revenue, the commerce ministry said that the demand of giving retrospective IGST exemption to exporters could be taken up by the GST Council, chaired by the finance minister and comprising state ministers.

“This department is of the view that enthusiasm of exporters should not be killed by overzealous revenue collection based on technicalities where revenue does not accrue in principle. You may consider placing these concerns before the GST Council for early resolution,” the ministry has said. It has also stated that as on date, imports made under the advance authorisation scheme on both pre and post export basis are exempted from payment of IGST.

Exporters have raised concerns regarding litigation and penal action by DRI with regard to pre-import condition under the scheme. DRI had sent notices to exporters for claiming post import IGST exemption between October 2017 and January 2019. During the period, this exemption was allowed only for pre-import of inputs. But the exemption was allowed both for pre and post import from January 15 this year. The commerce ministry is seeking implementation of this notification from October 2017 itself.

The company availed lower corporate tax rate announced by the government which resulted in a gain of Rs 143.12 cr