HP Adhesives Limited has informed the Exchange regarding 'Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Show Cause Notice from GST Authority'.
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HP Adhesives Limited has received a Show Cause Cum Demand Notice from the Additional Commissioner, CGST Audit-II, Mumbai, on September 26, 2025. The notice, issued under Section 74(1) of the CGST Act, 2017, pertains to a GST audit covering FY 2019-20 to FY 2023-24 and ascertains total GST dues of Rs. 2,91,75,420 (about Rs. 2.92 crore) along with applicable interest and penalty. The main allegation relates to non-reversal of Input Tax Credit on IPO expenses (Rs. 2.84 crore), with smaller amounts involving blocked credit claims, RCM on foreign bank charges, and proportional ITC distribution. The company plans to file a detailed reply contesting the demand and believes it has strong legal grounds to defend its position. Management does not expect any material impact on financial or operational activities.
This is a tax dispute at the show cause stage, not a confirmed liability, so near-term impact may be limited. However, if the demand is upheld with interest and penalty, the final outflow could be significantly higher than Rs. 2.92 crore, which investors should monitor closely.