RANASUGBSERana Sugars LtdMediumNeutral
Announced Fri, 1 May · 09:59 IST

The Company has received an order under GST from Moradabad Division. The Company is planning to challange the same before Tribunal as per letter

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AI summary

Rana Sugars Ltd received a consolidated GST demand order of Rs. 53,28,932 from the Additional Commissioner, Grade II Appeal, Central GST, Moradabad, Uttar Pradesh. The demand includes duty demand of Rs. 23,42,902, interest of Rs. 27,51,740, and penalty of Rs. 2,34,290. The violations alleged relate to e-way bill cancellation and delayed re-generation, excess quantity of Molasses, and free distribution of bio-compost for Financial Year 2019-20. The company considers the demand not maintainable as it had already replied to departmental queries. The company is evaluating all options including filing an appeal before the Tribunal and states it does not anticipate any material impact on financials or operations given its strong case.

Likely market impact

While the order creates a contingent liability of Rs. 53.3 lakh, the company believes it has a strong case and plans to appeal. No immediate financial impact is expected until the appeal is decided, but an adverse ruling could result in additional costs for the company.