Godavari Biorefineries has received a show-cause notice from Karnataka tax authorities demanding approximately ₹10.57 crore in GST dues, interest, and penalties for the 2022-23 tax period.

The notice was issued by the Office of the Commercial Tax Officer (Enforcement), DGSTO, Jamkhandi, under Section 73 of the CGST/KGST Act, 2017. It alleges short payment or availing of ineligible input tax credit.

Breakdown of the Demand

The total quantum of claims includes principal tax demand along with applicable interest and penalty amounts as detailed below:

The combined tax liability cited in the notice totals ₹18,12,85,079 when including all components.

Company Response

Godavari Biorefineries disclosed the receipt of the notice on August 29, 2026, via a filing to stock exchanges pursuant to Regulation 30 of the SEBI Listing Regulations. The company stated it is currently examining the notice and will take appropriate legal steps, including filing replies or appeals, as advised.

No material financial impact has been quantified by management at this stage, with the firm noting it is evaluating the implications on its financial and operational activities.

Godavari Biorefineries has received a show cause notice demanding approximately ₹17.02 crore in unpaid Goods and Services Tax (GST). The notice was issued by the Assistant Commissioner of Central GST, Audit, Belgavi, on August 21, 2026.

The tax authority alleges non-payment of GST on the supply of Ethylated Naphtha Alcoholic (ENA) for further manufacture of alcoholic liquor fit for human consumption. The company supplied ENA to the Karnataka State Beverages Corporation Ltd (KSBCL) without paying GST, classifying it as an exempted supply in its sales register and GST returns.

Details of the Demand

The total GST demand is split equally between central and state components. The specific breakdown of the claim is as follows:

The dispute covers the period from the financial year 2021-22 through October 2024. The notice was issued under Section 74(1) of the CGST/SGST Act, 2017.

Company Response

Godavari Biorefineries disclosed the receipt of the notice pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated it is currently examining the notice and evaluating the material impact on its financial and operational activities.

Management confirmed it will take appropriate legal steps, including filing replies or appeals, as advised by its legal counsel. No final determination on the liability or potential penalties has been made at this stage.