Key Event

Neogen Chemicals Limited received a show cause cum demand notice from the Office of the Commissioner CGST and Central Excise Commissionerate, Belapur, on September 5, 2026. The notice is dated August 24, 2026, with reference number F. No. CGST/Bel-IV/R-IV/Scrutiny (2022-23)/118/2026-27.

Financial Impact Details

Quantum of Demand: ₹6,97,08,028/- (6.97 crore rupees)

Breakdown of Demand:

  • Consolidated tax demand comprising applicable interest and penalty
  • Principal tax amount of ₹1,38,95,418/- was already paid via DRC-03 dated December 28, 2022, and has been appropriated toward tax liability
  • The current demand consists of interest under Section 50(1) and penalty under Section 73 on the principal amount

Legal Basis: Demand levied pursuant to Section 73 of CGST Act, 2017 and MGST Act, 2017 read with Section 20 of IGST Act, 2017.

Grounds for Notice

The notice has been issued on the following grounds:

1. GSTR-1 vs. GSTR-3B tax mismatch - Tax was paid via DRC-03 without interest; interest and penalty are now demanded

2. Excess ITC on import of goods - GSTR-3B vs. GSTR-2B mismatch with no valid Bills of Entry for FY 2022-23

3. Excess ITC - GSTR-3B vs. GSTR-2A - Unsubstantiated SEZ/import claims

Company Response and Impact Assessment

The company is evaluating the notice and will file a detailed reply with the adjudicating authority within prescribed timelines. Neogen Chemicals states it will take appropriate actions and pursue all legal remedies available to it.

Financial Impact Statement: The company explicitly states that "there is no material impact on financial, operational or other activities of the Company, except for the amount mentioned in the Notice."

Additional Information

Filing Reference: Disclosure made under SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026

Website Disclosure: The information has been uploaded on the company's website at https://neogenchem.com/announcements/ under 'Other Disclosure pursuant to regulation 30'

Signing Authority: Unnati Kanani, Company Secretary & Compliance Officer (Membership No: A35131)