The CGST Authority has levied a penalty on the company pertaining to matters related to availing of ITC.
RNBDENIMS · price
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The Central GST Authority (Assistance Commissioner, Gujarat) has imposed a penalty of Rs. 43.66 lakh on R&B Denims Ltd related to the availing of Input Tax Credit (ITC). The total monetary impact, including the tax demand and penalty, is Rs. 87.32 lakh. The order was passed under Section 74 of the CGST Act, 2017 and GGST Act, 2017, and was received by the company on January 1, 2025. The company has filed an appeal against the order to challenge it. The disclosure to the stock exchange was delayed by over three months, which the company attributes to time taken for internal review and calls inadvertent.
The penalty and underlying tax demand together total about Rs. 87.32 lakh, which is a material but not catastrophic sum for the company. Since the company is appealing, the final outcome is uncertain. Shareholders should watch for the appeal result, as an adverse ruling could affect financials, while a favourable outcome could reverse the impact.