This is to inform you that Company has received a Show Cause Notice from the GST Department and the requisite information under the said regulation is annexed.
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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Shahlon Silk Industries has received a Show Cause Notice (Form GST DRC-01) from the GST Department, Surat Zonal Unit, Gujarat, under Section 122 of the CGST Act, 2017. The notice relates to financial years 2023-24 and 2024-25 and alleges that the company passed on ineligible Input Tax Credit (ITC). The proposed penalty amounts to Rs. 4.24 crore for FY 2023-24 and Rs. 1.27 crore for FY 2024-25, totalling approximately Rs. 5.50 crore. The company has stated it is analysing the notice and will file an appropriate reply. The company has currently assessed the financial and operational impact as Nil.
This is a preliminary notice and not an order, so there is no immediate financial impact. However, if the penalty is upheld, it could result in an outgo of around Rs. 5.5 crore and may weigh on the stock in the near term. Investors should watch for the company's response and any further developments in the matter.