Intimation of show cause notice received from Central Goods & Services Tax Division - Mandi
FERMENTA · price
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Awaiting price reaction for this filing.
Fermenta Biotech received a show cause notice on April 16, 2025 from the Office of the Assistant Commissioner, Central GST Division, Mandi. The notice relates to an IGST refund of Rs. 1,35,64,986 (approximately Rs. 1.36 crore) the company had previously claimed and received. The tax authority is alleging the refund was inadmissible and is asking the company to explain why the refunded amount should not be recovered, along with applicable interest and penalty under Section 74 of the CGST Act, 2017. The dispute pertains to four shipping bills dated between December 2018 and January 2020. The company has stated it intends to submit the necessary information and documents to contest the claims, and believes there will be no material impact on its financials or operations beyond the final liability that may be determined.
This is a regulatory tax demand under evaluation, not yet crystallised into an actual liability. Shareholders should note the potential financial exposure of up to Rs. 1.36 crore plus interest and penalty if the company fails in its response, but management has indicated no material impact on overall operations at this stage. The stock may see minor sentiment pressure given the tax dispute, though the amount is relatively small relative to typical corporate financials.