Thirumalai Chemicals Receives GST Show Cause Notice

Details of Regulatory Action

• The Company received a show cause notice from Deputy Commissioner, Commercial Tax Department, Ranipet, Tamil Nadu
• Notice issued under Section 73 of CGST Act, 2017
• Basis: Scrutiny of return GSTR-2A for financial year 2023-24
• Allegation: Claim of ineligible Input Tax Credit (ITC) under section 17(5) of GST Act, 2017
• Specific allegation pertains to motor vehicles supplied by the Company's suppliers

Quantitative Financial Exposure

As per the annexure to the disclosure:

• Tax demand: ₹6.80 lakhs
• Interest demand: ₹3.14 lakhs
• Penalty: Not specified in the demand
• Total quantified exposure: ₹10.62 lakhs (including tax and interest)

Company's Response and Position

• The Company will submit its response to the show cause notice before the authority within prescribed timelines
• The Company prima facie believes that the demands are erroneous and not sustainable
• Management expects any financial implication to be "very insignificant"
• Company states this will not have any material impact on the financial position of the Company

Timeline

• Show cause notice received: Not specified (disclosure dated November 13, 2026)
• Response to be submitted: Within prescribed timelines (not specified)
• Financial year in question: 2023-24

Impact Assessment

As per company disclosure: Expected financial implications are considered very insignificant with no material impact on financial position. The total potential exposure quantified is ₹10.62 lakhs in tax and interest demands.