Gujarat Fluorochemicals Limited has informed the Exchange regarding 'Announcement under Regulation 30 of SEBI Listing Regulations'.
FLUOROCHEM · price
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Awaiting price reaction for this filing.
Gujarat Fluorochemicals has received an order dated 13 May 2025 from the Office of the Assistant Commissioner, Central GST and Central Excise, Vadodara, imposing a penalty of Rs. 1,13,08,480 (approx. Rs. 1.13 crore). The matter relates to short payment of GST on royalty payments for the period October 2021 to July 2022, where the company initially paid GST at 12% but a notification dated September 2021 raised the rate to 18%. The company had already self-corrected in September 2022 by creating a 6% differential provision and paid the dues along with interest in October 2022. Despite this voluntary compliance, the department proceeded with the penalty order. The company has stated it believes the penalty is not sustainable and is in the process of filing an appeal before the appellate authority.
The penalty amount of ~Rs. 1.13 crore is relatively small for a company of this size and is unlikely to materially affect financials or stock price. Since the company is actively contesting the order and has already paid the differential tax with interest, the long-term impact is expected to be limited unless the appeal is unsuccessful.