Cello World Limited has informed the Exchange about General Updates
CELLO · price
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Awaiting price reaction for this filing.
Cello World Limited has received a Demand Cum Show Cause Notice dated June 23, 2025, from the Directorate General of Goods & Service Tax Intelligence, Surat Zonal Unit. The notice alleges misclassification of certain goods sold by the company and its material subsidiary under Section 74(1) and 74A(1) of the CGST Act, 2017. The dispute covers the period from April 2018 to March 2025, with an alleged short payment of GST amounting to approximately ₹24.64 crore. The company has stated it is evaluating legal remedies and plans to file a response within the prescribed time limit. Management has clarified that there would not be a material impact on the company's operations or financials.
This is a show cause notice and not a final order, so there is no immediate financial liability. The ₹24.64 crore amount is modest relative to the company's size, and management expects no material impact. However, an adverse ruling could result in a tax demand plus penalties, so investors should watch for further updates on the company's response and outcome.