Intimation about show cause notice from GST
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 3.5 pts less than Nifty Microcap 250 and 2.9 pts less than its Pharmaceuticals peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Sandu Pharmaceuticals has received a show cause notice from the Maharashtra Goods and Service Tax Department, Office of the Deputy Commissioner of State Tax, dated 31 May 2025. The notice, issued under Section 73(1) of the MGST Act 2017, alleges excess Input Tax Credit (ITC) claimed in GSTR3B/9 not confirmed in GSTR2A/8A, ITC availed on invoices from cancelled registration suppliers, and short payment of Reverse Charge Mechanism (RCM) liability. The total alleged liability is Rs. 96.49 lakhs, including interest and penalty. The company plans to file a reply and, based on its own assessment and legal advice, expects a favourable outcome. Management does not foresee any material impact on financial or operational activities.
The potential liability of around Rs. 96.5 lakhs is relatively small for a listed company, and management expects a favourable resolution. Near-term impact on the stock is likely limited, though investors should watch for updates on the company's response and final order.