Rs. 4,26,16,311 GST demand and show cause notice dropped; no financial impact

A demand and show cause notice of Rs. 4,26,16,311 plus interest, over tax credit availed on IPO-related expenses, has been dropped by the authority, which held the credit fair and legitimate.

Fri 2 Oct 2026

Notice amount dropped

Rs. 4,26,16,311 plus interest

Order date

October 1, 2026

Tax credit period

FY 2020-21 and FY 2021-22

Notice issuer

Additional Commissioner (AE), CGST & Central Excise Commissionerate, Surat

Financial impact

no financial impact

What happened

• The company had received a Demand and Show Cause Notice from the Additional Commissioner (AE), CGST & Central Excise Commissionerate, Surat, worth Rs. 4,26,16,311/-, plus the interest thereon.
• The notice disallowed tax credit availed over various expenses made during FY 2020-21 and FY 2021-22, towards the Initial Public Offer (IPO) of the company.
• The company now informs that the said proceedings have been dropped by the Authority through an Order issued on October 1, 2026.

What the order says

• The Authority considered the availed tax-credit fair and legitimate.
• The company states the outcome is without bearing any financial implications to it.

What it means for investors

• A demand of Rs. 4,26,16,311/- plus interest, raised against the company, no longer stands.
• This update follows the company's earlier correspondence dated April 24, 2026 on the same notice, and is shared under Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

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