UP GST authority rectifies show cause notice; alleged liability reduced to Rs. 4.50 Crore from Rs. 273.40 Crore
Eureka Forbes has received a Rectification Order from UP GST authorities for FY 2022-23, cutting the alleged liability in the show cause notice from Rs. 273.40 Crore to Rs. 4.50 Crore.
- Earlier alleged aggregate liability
- Rs. 273.40 Crore
- Revised alleged aggregate liability
- Rs. 4.50 Crore
- Revised tax component
- Rs. 3.19 Crore
- Revised interest component
- Rs. 0.99 Crore
- Revised penalty component
- Rs. 0.32 Crore
The company has disclosed that it received a Rectification Order under Section 161 of the Uttar Pradesh Goods and Services Tax Act, 2017. The order has been passed by the Office of the Deputy Commissioner, State Tax, Sector-1, Lucknow, and relates to a show cause notice issued for the financial year 2022-23. The company has described this as a favorable rectification order.
What the earlier notice sought
- Tax liability: Rs. 149.21 Crore
- Interest: Rs.109.27 Crore
- Penalty: Rs. 14.92 Crore
- Aggregate: Rs. 273.40 Crore
What the rectification order now says
- Tax: revised and reduced to Rs. 3.19 Crore
- Interest: revised and reduced to Rs. 0.99 Crore
- Penalty: revised and reduced to Rs. 0.32 Crore
- Aggregate: revised and reduced to Rs. 4.50 Crore
So the aggregate amount of the alleged liability has moved from Rs. 273.40 Crore to Rs. 4.50 Crore following the rectification.
The company's stand
- It maintains that the rectified show cause notice is "devoid of merits, not sustainable on facts or in law or in procedure".
- It intends to contest the rectified notice comprehensively within the prescribed timelines.
- It states that it does not envisage any material impact on the financials, operations or other activities of the company arising from this rectified show cause notice as well.
The authority, the date of receipt of the communication and the details of the dispute have been placed on record by the company in the annexure to the disclosure. The communication was received on October 01, 2026, and the disclosure follows the company's earlier letter dated September 28, 2026 on the same matter.
What a retail investor can take away
- This is an update on a tax dispute, not a fresh demand. The direction of change is a reduction in the amount the authorities are seeking.
- A show cause notice and a rectification of it are steps in an ongoing process; the company has said it will continue to contest the matter.
- The company's own stated expectation is that there will be no material impact on its financials, operations or other activities.
- For judging size, the revised aggregate alleged liability is Rs. 4.50 Crore against the earlier Rs. 273.40 Crore.
More numbers
- Aggregate alleged liability as per earlier show cause notice (reduced from)Rs. 273.40 Crore
- Aggregate alleged liability as per rectified notice (reduced to)Rs. 4.50 Crore
- Earlier tax liability in the show cause noticeRs. 149.21 Crore
- Earlier interest in the show cause noticeRs.109.27 Crore
- Earlier penalty in the show cause noticeRs. 14.92 Crore
- Revised tax liability after rectificationRs. 3.19 Crore
- Revised interest after rectificationRs. 0.99 Crore
- Revised penalty after rectificationRs. 0.32 Crore
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