CGST appellate order modified, ITC demand cut from Rs 49.3 lakh to Rs 6.7 lakh

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Price reactionminutes from the announcement price · days from the prior close

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Nifty Microcap 250market · in no size index; the smallest one is used+2.6%-0.2% vs market

Stationary peers, median of 7sector+1.4%+1.0% vs sector

On the reaction day the stock moved 0.2 pts less than Nifty Microcap 250 and 1.0 pts more than its Stationary peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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AI summary

For FY 2020-21, the original CGST order disallowed Rs 49.3 lakh of Input Tax Credit and imposed a Rs 4.9 lakh penalty. The Appellate Authority has now modified the order, reducing ITC disallowance to about Rs 6.7 lakh and penalty to about Rs 66,886. The company plans to file a further appeal. No material impact on financials, operations, or activities stated.

Likely market impact

Favorable outcome for shareholders. Tax liability significantly lowered after appeal. Company to pursue further appeal, no material financial impact stated.