Ponni Sugars gets GST show cause notice for Rs 9.35 cr over input tax credit

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

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AI summary

Ponni Sugars (Erode) received a show cause notice from the Additional Commissioner of GST, Coimbatore, alleging wrongful Input Tax Credit claims on its Co-Generation Power Plant and other services, and non-payment of GST on certain services. The demand is Rs 9.35 crore plus applicable interest and penalty. The company says the demand is not legally tenable and will reply and take appropriate legal recourse. Management believes the notice may not result in any material financial impact.

Likely market impact

Potential tax liability of Rs 9.35 cr plus interest/penalty if upheld, but company views demand as untenable and expects no material impact.