HP Adhesives Limited has informed the Exchange about General Updates
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Awaiting price reaction for this filing.
HP Adhesives Limited has received a Show Cause Cum Demand Notice from the Additional Commissioner, CGST Audit-II, Mumbai, dated September 26, 2025. The notice, issued under Section 74(1) of the CGST Act, 2017, claims GST dues of Rs. 2,91,75,420 (about Rs. 2.92 crores) along with applicable interest and penalty. The demand pertains to FY 2019-20 to FY 2023-24 and primarily relates to non-reversal of Input Tax Credit on IPO expenses (Rs. 2.84 crores), blocked credit claims, non-payment of reverse charge on foreign bank charges, and non-distribution of proportional ITC. The company plans to file a detailed reply contesting the claim, stating it has adequate legal grounds and does not expect any material impact on its financial or operational activities.
The Rs. 2.92 crore demand is notable for a small-cap company, but since the matter is a show cause notice and the company intends to contest it, the immediate impact on stock price may be limited. However, an adverse final order could affect financials and remains a key risk to monitor for shareholders.