Sterling Tools Limited has informed the Exchange about 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 dated June 25, 2025, from the Additional Commissioner, CGST, Audit Commissionerate, Dehradun, alleging short payment of GST on the classification of goods supplied, interest liability on supplementary invoices for price variations, and excess availment of IGST Input Tax Credit. The proposed GST demand is approximately Rs. 9.78 crore, plus Rs. 15.69 lakh as interest on supplementary invoices, and Rs. 18,625 towards excess input tax credit, along with applicable interest and penalties. The company states it will file an appropriate response and believes it has strong legal and factual grounds, supported by judicial precedents and similar proceedings dropped in other states. Management currently sees no material financial impact from the notice.
This is a preliminary tax demand, not an adjudication, and the company plans to contest it. Investors should monitor the outcome, but the proposed demand of around Rs. 9.8 crore is a moderate one-time overhang compared to the company's overall scale and is not expected to have an immediate material impact on financials.