We hereby inform that the Company has received a show cause notice from the Office of the Commissioner of GST and Central Excise, MHU Complex, Annasalai, Nandam, Chennai on 23rd September 2025
KANCHI · price
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Kanchi Karpooram Ltd received a Show Cause Notice from the Office of the Commissioner of GST and Central Excise (Audit II Commissionerate), Chennai on September 23, 2025, under Section 74(1)/73(1) of the CGST/TNGST Act 2017. The notice flags discrepancies found during a GST audit in four areas: excess claim of Input Tax Credit, non-reversal of ITC, tax not paid on rental service income, and tax not paid on certain invoices. The potential tax demand stated in the notice is Rs. 47.43 lakhs, with no interest or penalty imposed at this stage. The company has stated it is evaluating appropriate representations in response to the notice.
This is at a preliminary stage – no demand has been crystallised and no penalty or interest has been levied yet. The Rs. 47.43 lakhs is a contingent tax exposure on a relatively small-cap stock, which may weigh mildly on sentiment but is unlikely to be material to the business. Investors should watch for the company's response and any further order from the GST authorities.