Date: September 30, 2026
Regulatory Disclosure
Welspun Enterprises Limited has received a Show Cause Notice from the State GST Authority in the State of Haryana under Section 50 of the Central Goods and Service Tax Act, 2017 ('CGST Act, 2017')/ Haryana Goods and Service Tax Act, 2017 ('HRGST Act, 2017') and penalty under Section 73 of the CGST Act, 2017/ the HRGST Act, 2017.
Notice Details
Authority: The Deputy Commissioner of State Tax, Haryana (State GST Authority)
Period Covered: Tax Financial Year 2022-23
Nature of Dispute: Tax Show Cause Notice (SCN) issued under Section 73 of the CGST Act, 2017/ the HRGST Act, 2017 proposing:
- Imposition of tax of ₹15,37,46,253/- (₹153.7 crore)
- Applicable interest under Section 50 of CGST Act, 2017/ the HRGST Act, 2017
- Penalty under Section 73 of the CGST Act, 2017/ the HRGST Act, 2017
Grounds for Notice: The notice alleges:
- Short payment of tax
- Excess availment of Input Tax Credit (ITC)
- Non-payment to vendors within 180 days
- Alleged availment of ITC on certain supplies in violation of Section 16 of the CGST Act, 2017/ the HRGST Act, 2017
Date of Receipt: September 30, 2026
Company's Response and Assessment
The Company states that based on its assessment, the aforesaid demand is not maintainable. The Company is taking appropriate steps to file a detailed reply against the SCN.
The Company is of the view that the demand raised in the SCN is without merits and is expected to be set aside during the adjudication proceedings.
Financial Impact Assessment
The Company does not foresee any material impact on financial or operational or other activities of the Company.