Sarla Performance Fibers Limited has informed the Exchange about Intimation of receipt of GST Order under Regulation 30 of SEBI LODR Regulations
SARLAPOLY · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 0.7 pts more than Nifty Microcap 250 and 0.2 pts more than its Other Textile Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
Minute windows have no benchmark: there is no intraday index history to compare against.
Sarla Performance Fibers has received an Order-in-Original dated July 31, 2025 from the Additional Commissioner of Central GST & Central Excise, Surat, alleging wrongful claims of IGST refund of ₹9.45 crore on exports and unutilized ITC refund of ₹11.34 crore on duty-free imports. A total tax demand of ₹20.79 crore has been raised under Section 74 of the CGST Act, 2017, along with an equivalent penalty of ₹20.79 crore and applicable interest (amount not quantified). The order follows a show cause notice issued on June 23, 2025. The company states it acted in good faith with proper documentation and a bona fide interpretation of GST law, and plans to pursue legal recourse. The company currently asserts that no material financial impact is anticipated at this stage.
While the company plans to appeal and downplays the financial impact, a potential combined exposure of over ₹41.5 crore (tax + penalty, excluding interest) is material for a small-cap textile company and could weigh on the stock if the appeal is unsuccessful. Investors should watch for updates on the legal challenge and any quantified interest amount.