Announcement under Regulation 30 SEBI(LODR)Regulations, 2015
STANLEY · price
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Awaiting price reaction for this filing.
Stanley Lifestyles Ltd's wholly owned subsidiary, Stanley OEM Sofas Limited, has received a Show Cause Notice from the Office of the Deputy Commissioner of Commercial Taxes (Audit), Bengaluru, under Section 73 of the KGST Act, 2017. The notice alleges short declaration of turnover and non-reversal of Input Tax Credit on creditors outstanding beyond 180 days for the tax period April 2021 to March 2022. The potential financial implication is ₹55.63 lakh, comprising ₹2.74 lakh in tax and ₹52.89 lakh in interest, with no penalty imposed at this stage. This is a revised disclosure submitted on July 11, 2025, following an earlier submission on July 10, 2025. The subsidiary is evaluating an appropriate representation in response to the notice.
The ₹55.63 lakh potential liability is small relative to the company's operations and unlikely to materially affect financials, though it highlights past GST compliance gaps in the subsidiary for FY22. Investors should monitor the outcome of the representation, as an adverse ruling could set a precedent for similar claims.