Sharda Motor Industries Limited has informed the Exchange about Action(s) initiated or orders passed
SHARDAMOTR · price
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Awaiting price reaction for this filing.
Sharda Motor Industries has received GST Show Cause Notices from the Office of the Joint Commissioner (State Tax), Chennai Intelligence-II, dated August 5, 2025. The notices cover FY 2020-21 to FY 2023-24 and relate to alleged non-payment of GST under the Reverse Charge Mechanism on Expat Employees and Royalty Fee. The total proposed penalty across the four years amounts to approximately ₹2.76 crore (₹56.46 lakh for FY21, ₹98.24 lakh for FY22, ₹59.43 lakh for FY23, and ₹62.33 lakh for FY24). The company has stated it believes the proposed levy is arbitrary, unjustified and unsustainable in law, and plans to file a reply within the permitted timeline. Management has indicated no material impact on financial operations at this stage.
The financial exposure of ~₹2.76 crore in proposed penalties is relatively small and the company intends to contest it, so the immediate impact on shareholders is limited. Investors should keep an eye on the outcome of the reply and any subsequent order, as an adverse ruling could result in a modest one-time outflow plus interest.