Further SGST reimbursement notice: additional ₹1.66 crore recoverable, aggregate ₹16.56 crore
A further notice has been received from the Director of Industries, Bihar, Patna, over an incorrect SGST reimbursement claim.
By ScoutQuest · · 2 min read
- Additional amount recoverable
- ₹ 1.66 crore
- Aggregate excess claim/reimbursement
- ₹16.56 crore
- Interest directed
- 18% per annum
A further notice has been received by the company from the Director of Industries, Bihar, Patna, Department of Industries (Bihar State Investment Promotion Board Secretariat, Bihar, Patna) regarding clarification for making an incorrect claim for SGST reimbursement.
What the update states
- The company had claimed or received subsidy as reimbursement of Goods and Services Tax (SGST) under the Bihar Industrial Promotion Policy, 2016 / 2011, for the period from April 2019 to December 2024, in respect of sales of products within the State of Bihar.
- In February 2026, the company had received a notice from the Office of the Joint Commissioner of State Tax, Kishanganj Circle, Kishanganj, demanding recovery of Rs 14.9 crore from the company.
- Under the present notice, an additional amount of ₹ 1.66 crore is recoverable over and above that amount, resulting in an aggregate excess claim or reimbursement of ₹16.56 crore for the same period.
- The company has been directed to deposit the amount and to submit a clarification or explanation as to why it should not be recovered, along with interest at the rate of 18% per annum.
Amount recoverable from distributors
- Based on the company's current assessment, in terms of the agreement entered into with certain distributors from time to time, an aggregate of Rs. 114.81 Millions is recovered or expected to be recovered from the concerned distributors, due to breach of a clause of the agreement for utilising SGST credits to discharge IGST liabilities.
Company's stated position
- The company states it is in the process of examining the notice and shall take appropriate legal steps, including update replies or appeals, as may be advised.
How one may read this
- The development relates to a subsidy reimbursement linked to SGST, where a state authority has asked for recovery. The update quantifies the demand and also states the direction to deposit the amount with interest at 18% per annum.
- The same update also states an amount the company recovers or expects to recover from certain distributors, linked to a breach of the agreement clause, so both figures can be weighed together.
- The company has said it is examining the notice and will take appropriate legal steps, including replies or appeals.
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More numbers
- Amount demanded in the Earlier NoticeRs 14,90,02,928.69/-
- Additional amount recoverable under the Present Notice₹ 1,66,00,296.31/-
- Aggregate excess claim/reimbursement₹16,56,03,225/-
- Interest rate directed per annum18% per annum
- Amount recovered / expected from concerned distributorsRs. 114.81 Millions
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