Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015

Nature of the Event

This is a follow-up disclosure to an earlier communication dated August 31, 2024, regarding a GST demand order. The company is intimating a material development in an ongoing GST matter.

Details of the Authority and Action

  • Name of the Authority: Deputy Commissioner (Appeals), Hosur
  • Nature of Action: Order for intimation of revised demand under Section 73 of the TNGST Act, 2017 for the Financial Year 2019-20.
  • Date of Receipt of Order: August 21, 2026

Background and Alleged Violation

The company had initially received an order from the Commercial Tax Officer, Hosur (North) – II Krishnagiri, for a GST demand of ₹3,14,81,140 (comprising tax, interest, and penalty) for FY 2019-20. The alleged violation was the non-payment/reversal of GST on certain items as per the GST Department.

The company filed an appeal against this order.

Outcome of the Appeal

After due consideration, the Deputy Commissioner (Appeals), Hosur, passed an order on August 21, 2026, which significantly reduced the original GST demand. The revised demand details are as follows:

| Particulars | Original Demand (₹) (Order Dt: 30.08.2024) | Demand Set Aside by Appellate Authority (₹) (Order Dt: 21.08.2026) | Net Reduction (₹) |

| Tax | 1,68,37,175 | 1,68,19,175 | 18,000 |

| Penalty | 16,82,630 | 16,12,630 | 70,000 |

| Interest | 1,29,61,335 | 1,29,47,469 | 13,866 |

| Total Demand | 3,14,81,140 | 3,13,79,274 | 1,01,866 |

The appellate order effectively set aside ₹3,13,79,274 of the original demand. The balance demand payable by the company is now only ₹1,01,866.

Stated Financial and Operational Impact

As per the disclosure, the company has stated that "There is no material impact on the financials, operations or other activities of the Company" as a result of this order.

Future Course of Action

The disclosure states that the company is examining the appellate order and will take an appropriate course of action in the future.