Response for delay submission of the show cause notice received from Maharashtra GST
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Sandu Pharmaceuticals received a show cause notice from the Maharashtra GST Department (Deputy Commissioner of State Tax) under Section 73(1) of the MGST Act, 2017, dated 31 May 2025. The notice relates to excess Input Tax Credit claimed in GSTR3B/9, ITC from cancelled supplier registrations, and discrepancies in reverse charge mechanism liabilities, with a total demand of Rs. 96.48 lakh including interest and penalty. The company filed its original intimation to BSE on 3 June 2025 but late, prompting BSE to seek reasons for the delay. Sandu explained that the GST email notice was sent to a non-registered email id and to a former employee's account, and the company only discovered the notice via a portal pop-up. The company says it will file a reply and, based on legal advice, expects a favourable outcome with no material financial or operational impact.
The demand of about Rs. 96 lakh is small relative to a listed company and management expects no material impact, but resolution remains pending. Late disclosure to the exchange may attract minor governance scrutiny though no penalty has been imposed.