Company Disclosure: GST Proceedings Update

Key Developments

  • The company received a Show Cause Notice under section 74/74A of the Central Goods and Services Tax Act, 2017 from Directorate General of GST Intelligence Ahmedabad Zonal Unit dated 18 August 2026
  • Additionally received FORM GST DRC-01 on 19 August 2026 from the GST Department
  • The proceedings relate to financial years 2020-2021 to 2024-2025

Financial Impact

  • Aggregate amount stated: ₹2,24,20,454 (approximately ₹2.24 crore)
  • This amount comprises tax, interest, and applicable penalty
  • Financial impact not quantified beyond the stated demand amount

Allegations

  • The company is alleged to have committed violations relating to the availment and utilization of Input Tax Credit under applicable GST provisions
  • Specific violations relate to FY 2020-21 to FY 2024-25

Company's Response and Status

  • The company is reviewing the Show Cause Notice
  • Will submit an appropriate response within the prescribed time
  • Based on preliminary assessment, the company believes Input Tax Credit was appropriately availed under applicable GST provisions
  • The company maintains that ITC was appropriately availed under applicable GST provisions

Operational Impact

  • There is no material impact on the operations of the Company

Authorities Involved

  • Directorate General of GST Intelligence Ahmedabad Zonal Unit
  • GST Department

Timeline

  • Previous disclosure: 11 August 2026
  • Show Cause Notice date: 18 August 2026
  • DRC-01 receipt date: 19 August 2026
  • Current disclosure date: 21 August 2026

Company Representation

  • Signed by Sunil R. Agarwal, Chairman & Managing Director (DIN: 00265303)