Date: 26th August, 2026
Regulatory Disclosure
Mukta Arts Limited has disclosed that its material subsidiary, Mukta A2 Cinemas Private Limited, received a Show Cause Notice (SCN) under section 74 of the CGST Act, 2017.
Show Cause Notice Details
Issuing Authority: Office of the Commissioner of CGST and Central Excise, Audit Commissionerate, Vadodara Zone
Date of Receipt: 24th August, 2026 (received via email)
Nature of Notice: The SCN was issued in response to GST Audit observations for the financial years 2020-21, 2021-22, 2022-23, and 2023-24.
Alleged Violations: The department has asked Mukta A2 to regularize contraventions of various sections/rules of the GST Act with consequential demand of interest and penalty wherever applicable.
Company Response: Mukta A2 is seeking expert advice and intends to contest the SCN. The company will submit its response accordingly.
Financial Impact Assessment
The company states there is no material impact on financial, operational, or other activities of Mukta Arts Limited. In the event any penalty is adjudicated and becomes payable, the same shall be payable by Mukta A2 Cinemas Private Limited. The financials of Mukta A2 are consolidated with the financials of Mukta Arts Limited.
Disclosure Compliance
Regulatory Basis: Disclosure made under Regulation 30 read with Schedule III of SEBI Listing Regulations and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026.
Delay Explanation: The delay in intimation (from August 24 to August 26) was due to time required for internal review and verification of the SCN to ensure accurate and complete disclosure.