Thirumalai Chemicals Limited has informed the Exchange about notice received under Section 73 of CGST Act, 2017
TIRUMALCHM · price
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Awaiting price reaction for this filing.
Thirumalai Chemicals has received a notice from the Commercial Tax Officer in Ranipet, Tamil Nadu under Section 73 of the CGST Act, 2017, dated June 11, 2025. The notice relates to alleged issues with Input Tax Credit (ITC), including excess ITC, ITC on non-business transactions, ineligible ITC, and ITC on purchases from a cancelled dealer. The total demand is Rs. 377.04 lakhs, comprising Rs. 215.51 lakhs in tax, Rs. 139.97 lakhs in interest, and Rs. 21.56 lakhs in penalty. The company has stated that it believes the demands are erroneous and not sustainable, and plans to pursue legal remedies. Management views the potential financial impact as insignificant and not material to the company's overall financial position.
The tax demand of roughly Rs. 3.77 crore is relatively small for the company, and management has downplayed any material impact. Near-term stock reaction is likely muted, but investors should watch for updates on the company's legal challenge.