Background and Previous Notice
The Company had previously disclosed on February 10, 2026, regarding an earlier notice received from the Office of the Joint Commissioner of State Tax, Kishanganj Circle, Kishanganj. This earlier notice demanded recovery of ₹14,90,02,928.69 from the Company for SGST reimbursement claims under the Bihar Industrial Promotion Policy, 2016/2011.
Current Development
The Company has now received a subsequent notice ("Present Notice") from the Director of Industries, Bihar, Patna, which specifies an additional recoverable amount of ₹1,66,00,296.31. This amount is over and above the amount stated in the Earlier Notice.
Aggregate Financial Impact
The total disputed amount for excess claim/reimbursement of SGST for the period from April 2019 to December 2024 now aggregates to ₹16,56,03,225.
Regulatory Directives
The Company has been directed to:
- Deposit the aforementioned amount
- Submit a clarification/explanation as to why the amount should not be recovered
- The recovery includes interest at the rate of 18% per annum
Recovery from Distributors
Based on the current assessment, the Company has identified that an aggregate amount of ₹114.81 Millions (₹11.48 crore) is recovered/expected to be recovered from concerned distributors. This recovery is due to breach of agreement clauses by these distributors for utilizing SGST credits to discharge IGST liabilities.
Company's Response
The Company is currently examining the notice and shall take appropriate legal steps, including filing replies/appeals as may be advised.