Ethos Limited has made a regulatory disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding receipt of an order from the GST Appellate Authority, Noida.
Details of the Order
The order dismisses the appeal filed by the Company for financial years 2018-19 and 2019-20. The Appellate Authority upheld:
- Tax demand of ₹13.26 lakh with applicable interest
- Penalty of ₹13.26 lakh under Section 74 of the CGST Act, 2017
Reason for Demand
The demand relates to input tax credit (ITC) that was disallowed because the corresponding invoices were not reflected in the suppliers' GST returns. The Appellate Authority held that the eligibility of the credit had not been established.
Financial Implications
The total financial exposure comprises:
- GST demand: ₹13.26 lakh
- Penalty: ₹13.26 lakh
- Aggregate amount: ₹26.51 lakh
- Plus applicable interest (yet to be quantified)
After adjusting the pre-deposit of ₹1.33 lakh already paid, the balance exposure is approximately ₹25.19 lakh, excluding interest. The interest component is yet to be quantified.
Company Response and Next Steps
The Company is examining the order and proposes to file a further appeal before the competent appellate authority. The Company believes it has a good case on merits and is evaluating the remedies available to it.
Impact Assessment
The disclosure explicitly states that the order does not have any material impact on the financial, operational or other activities of the Company.