GST recovery notice of ~Rs. 34.3 lakh over input tax credit; company says no material impact
Sahajanand Medical Technologies has received an intimation of a GST recovery notice in Form GST DRC-01D dated 03 November 2026 from the Joint Commissioner of State Tax, West Circle, Ranchi.
By ScoutQuest · · 2 min read
- Demand Amount
- ~Rs. 34.3 lakh including interest and penalty
- Notice Form / Date
- Form GST DRC-01D dated 03 November 2026
- Period Covered
- financial years 2018-19 to 2020-21
What the company disclosed
Sahajanand Medical Technologies has informed the NSE and BSE that it received an intimation of a recovery notice in Form GST DRC-01D dated November 03, 2026, received on November 04, 2026. The notice was issued under Rule 142B of the Central Goods and Services Tax Act, 2017 by the Office of the Joint Commissioner of State Tax, West Circle, Ranchi, Jharkhand. The company describes it as a notice issued in connection with an initiation of demand recovery under the Act.
The amount involved
- The recovery of demands totals ~Rs. 34.3 lakh, including interest and penalty.
- It relates to orders issued in Form DRC-07 dated 22 July 2022, covering financial years 2018-19 to 2020-21.
- The issue under consideration relates to the eligibility of ITC (input tax credit) under the cross charge mechanism.
What the company says
- The notice does not have any material financial impact on the company, and there is no material financial, operational or business impact at this stage.
- The company is fully cooperating with the authorities and will provide all necessary information as required.
- It has litigated the matter before the respective Appellate Authorities for the demand and penalty under consideration.
- It will keep the stock exchanges informed of further significant developments, if any.
Plain-English meaning
GST DRC-07 is the form in which a tax demand is confirmed after adjudication. GST DRC-01D is a recovery notice, a step towards collecting a demand that has already been raised. In simple terms, the tax department has moved to recover an amount it had confirmed earlier, and the company is contesting that demand in appeal.
Input tax credit is the credit a business claims for GST paid on its purchases. Here the dispute is whether the credit claimed under a cross charge mechanism was eligible. A cross charge typically arises when one part of a group supplies services to another and GST is applied on that internal transaction.
What to watch
- The outcome of the appellate proceedings that the company has referred to for the demand and penalty under consideration.
- Any further update the company files with the stock exchanges on this matter.
Also from Sahajanand Medical Technologies
SMT Q2 FY27: record revenue, EBITDA and PAT in first results as a listed company
5 Nov 2026
Consolidated results for the 30 September, 2026
5 Nov 2026
CRISIL upgrades Sahajanand Medical Technologies to CRISIL A-/Stable on Rs.300 crore bank facilities; subsidiary at CRISIL BBB+/Stable
4 Nov 2026
More numbers
- GST recovery demand (including interest and penalty)Rs. 34,29,789/-
Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.