BSELink Pharma Chem LtdHighNegative
Announced Wed, 28 Jan · 19:24 IST

Disclosure order Regulation 30 read with Part A of Schedule III of SEBI Regulation 2015 Demand order from Assistant Commissioner Central GST & Central Excise Vadodara FY 2021-22

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Link Pharma Chem Ltd has received a demand order from the Central GST & Central Excise authority in Vadodara for FY 2021-22. The order raises a GST demand of Rs. 1,05,21,897 along with interest and a penalty of Rs. 10,52,190. Additionally, Rs. 11,29,639 has been demanded for excess Input Tax Credit (ITC) availed, plus interest and a penalty of Rs. 1,12,964. The total potential liability works out to roughly Rs. 1.28 crore including interest and penalties. The alleged violations are mismatches between tax liability declared in GSTR-1 versus GSTR-3B, and excess ITC claimed on imports not matching GSTR-2A. The company has stated there is no material impact on its operations and intends to file an appeal with the appropriate authority.

Likely market impact

The combined demand is modest relative to a typical small-cap pharma company and the company has classified it as non-material. However, the appeal outcome remains a key watch point — an unfavourable ruling could affect cash flows, while a successful appeal would remove the overhang. Near-term stock impact is likely limited.