Sterling Tools Limited has informed the Exchange about Action(s) Intimation Under Regulation 30 Of SEBI (Listing Obligations And Disclosure Requirements) Regulations, 2015, As Amended ('Listing Regulations') - Receipt Of Show Cause Notice From GST Department
STERTOOLS · price
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Sterling Tools Limited has received a Show Cause Notice from the Additional Commissioner, CGST, Audit Commissionerate, Dehradun, dated June 25, 2025. The notice alleges short payment of GST on the classification of goods supplied, interest liability on supplementary invoices issued for price variations, and excess availment of IGST Input Tax Credit. The total proposed demand is approximately Rs. 9.94 crore (Rs. 9.78 crore in GST, Rs. 15.70 lakh as interest, and Rs. 18,625 on ITC), along with applicable interest and penalties. The company states that its classification is consistent with established principles and supported by judicial precedents, and that similar proceedings in other states were dropped at the initial stage. It plans to file an appropriate response within the prescribed timelines and does not expect a material financial impact at this stage.
This is a preliminary tax demand and not an enforcement action or confirmed penalty. The financial impact is not material at this stage as per the company's assessment, but shareholders should monitor the outcome of the company's response and any further proceedings, as a worst-case unfavourable ruling could affect earnings.