Key Event Details
Orkla India Limited received a Show Cause Notice (SCN) in Form GST DRC-01 dated July 20, 2026, issued under Section 73 of the TNGST Act, 2017 and the CGST Act, 2017.
Notice Details
- Date of Receipt: July 20, 2026, at 7:35 P.M. (IST)
- Issuing Authority: Office of the Assistant Commissioner (ST), Ayyappanthangal Assessment Circle, Chennai, Commercial Taxes Department, Government of Tamil Nadu
- Total Demand Amount: ₹8,40,82,951/-
- Tax Demand: ₹5,23,57,426/-
- Proposed Interest: ₹2,64,39,783/-
- Proposed Penalty: ₹52,85,742/-
Allegations and Basis
The SCN raises issues relating to:
- Input Tax Credit (ITC) claims
- Reversal of common ITC under Section 17 read with Rules 42 and 43
- Reconciliation of exempt supplies
- Credit notes
- Transactions with related/distinct persons
The allegations primarily arise from the Department's interpretation of GST provisions and reconciliation of information disclosed in various GST returns and statements filed by the Company.
Company Response and Actions
The Company is currently evaluating the allegations contained in the SCN and is in the process of submitting detailed objections and supporting documentation before the authorities within the prescribed time. The Company would evaluate legal options available under applicable laws.