NELCO Limited has informed the Exchange regarding 'Update on Tax litigations'.
NELCO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
NELCO Limited has received an order from the Additional Commissioner of CGST & Central Excise dated 10th March 2026, confirming an earlier show cause notice regarding GST liability under the reverse charge mechanism for the period 1st April 2019 to 31st March 2022. The total demand, including penalty, is Rs. 1,414 Lakhs, of which Rs. 707 Lakhs is the penalty component. The order was passed under Section 74 of the CGST Act, 2017, and the company has stated it will pursue an appeal and evaluate other legal options. The company has noted 'no impact at this stage' in the filing, likely indicating it does not expect an immediate cash outflow pending appeal.
This is a negative development as an adverse tax order of Rs. 14.14 crore has been confirmed against the company, though it remains appealable. Short-term stock sentiment may be mildly negative, but the actual financial hit depends on the appeal outcome and whether the amount must be paid upfront.