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

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Price reactionminutes from the announcement price · days from the prior close

-1.3%Reaction day

₹304.55

prior close

₹300.15

announcement price

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Nifty Microcap 250market · in no size index; the smallest one is used+0.0%-1.3% vs market

Sugar peers, median of 27sector+1.1%-2.4% vs sector

On the reaction day the stock moved 1.3 pts less than Nifty Microcap 250 and 2.4 pts less than its Sugar peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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Reaction day

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Next day

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UpDownMarket · Nifty Microcap 250Sector · Sugar peers, median of 27Pending

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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.