Delta Manufacturing Limited faces a Goods and Services Tax (GST) recovery demand totaling ₹5,94,081.56 from the Maharashtra Industrial Development Corporation (MIDC). The company received the demand notice via speed post on July 23, 2026, covering receipts for various services provided between July 1, 2017, and September 4, 2022. While the financial impact is limited to under ₹6 lakh, the disclosure highlights regulatory scrutiny regarding historical tax compliance with government entities.

The filing was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Madhuri Pawar, Company Secretary of Delta Manufacturing Limited, signed the disclosure on July 23, 2026.

Breakdown of the Demand

The MIDC issued the demand after paying GST and interest on receipts related to various services during the specified period, which it alleges were not collected from Delta Manufacturing Limited. The total demand comprises principal GST and accrued interest.

Regulatory Context and Response

The demand follows a notice from the Director General of GST Intelligence. According to the filing, the MIDC had paid the GST and interest on the receipts in respect of various services for the period from July 1, 2017, to September 4, 2022, but did not collect these amounts from the company. Consequently, the MIDC is now demanding reimbursement.

Delta Manufacturing Limited stated that it is examining the demand and intends to submit its reply within the prescribed timelines based on the advice of its consultants. The company assessed the quantifiable financial impact as limited to the total amount of ₹5,94,081.56.

What the Numbers Show

The relatively small absolute value of the demand (₹5.94 lakh) suggests a limited direct hit to the company’s immediate liquidity or profitability. However, the nature of the dispute—retroactive tax collection spanning five years—indicates potential compliance gaps in historical invoicing or service agreements with government entities like MIDC. Investors should monitor whether this isolated incident points to broader systemic issues in the company’s tax documentation processes.

Delta Manufacturing received a notice for scrutiny of returns in Form GST ASMT-10 on July 2, 2026, from the Office of the Deputy Commissioner of State Tax, Ambad, Nashik - Maharashtra. The notice was issued under Section 61 read with rule 99 of the CGST/SGST Act, 2017, and concerns the company's GSTR-3B returns for the Financial Year 2023-2024. The authority has identified discrepancies related to the reporting of Reverse Charge Mechanism (RCM) Supplies in GSTR-1 during the scrutiny process.

The notice seeks an explanation and clarification regarding the observed discrepancies. According to the disclosure, the approximate amount identified in the discrepancy is Rs. 1,77,170, which is subject to reconciliation and explanation by the company. At this stage, the notice is primarily for seeking clarification, and the quantifiable financial impact is limited to this amount.

Delta Manufacturing stated that it is currently examining the notice in detail. The company intends to submit its response within the prescribed timelines, relying on the advice of its tax consultants. The disclosure was made to comply with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the GST Notice