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

Delta Manufacturing Limited announced that the Deputy Commissioner of State Tax, Ambad has dropped the GST scrutiny proceedings against the company for the Financial Year 2023-24. The authority passed an order to this effect on June 10, 2026, concluding the matter initiated under Section 61 of the CGST/SGST Act, 2017. The company discharged a total liability of Rs. 2,11,442, comprising GST and interest, to resolve the identified discrepancies.

The scrutiny concerned the GSTR-3B returns for the period from April 2023 to March 2024. The tax authority had initially identified provisional discrepancies amounting to approximately Rs. 2,39,363.43. Following the company's response and reconciliation, the proceedings were dropped, though the company accepted one specific discrepancy regarding excess Input Tax Credit (ITC) availment.

Resolution of Discrepancies

The company addressed the provisional discrepancies through reconciliation and payment of dues. The authority withdrew the demand for unreconciled tax and ITC reported in Form GSTR-9C after accepting the company's explanations.

Financial Impact

To resolve the matter, Delta Manufacturing discharged the specific tax liabilities associated with the accepted discrepancy. The company confirmed that there is no material impact on its financials, operations, or other activities following the resolution of these proceedings.