Parmeshwar metal Limited has received an order from the GST Authority in Gujarat confirming a demand of Rs. 10.87 crore on March 26, 2026. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Authority Order Details

The order was issued by the Deputy Commissioner of State Tax (Enforcement) Division-03, Gandhinagar in Form GST DRC-07. The demand structure includes multiple components as detailed below:

The order falls under the provisions of the Central Goods and Service Tax Act, 2017 (CGST Act, 2017) and the Gujarat Goods and Service Tax Act, 2017 (GJGST Act, 2017).

Nature of Alleged Violations

The GST Authority's order pertains to alleged inadmissible Input Tax Credit (ITC) that the company reportedly received from non-existent suppliers and tax defaulters. This represents a common area of scrutiny by tax authorities, where businesses claim ITC from suppliers who may not have legitimate operations or have defaulted on their tax obligations.

Company's Response and Next Steps

Parmeshwar Metal Limited has outlined its response strategy to the GST demand:

• The company plans to file an appeal before the Appellate Authority against the order
• Management believes the demand confirmed in the order is without merit
• The company expects the demand to be set aside during appellate proceedings
• No material impact is anticipated on financial, operational, or other business activities

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and the SEBI Master Circular dated November 11, 2024. The filing was signed by Shantilal Shah, Managing Director of the company, on March 26, 2026.

Parmeshwar Metal Limited has received two significant orders from GST authorities in Gujarat, confirming tax demands and penalties totaling ₹3.95 crores. The company disclosed this development to BSE Limited under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements.

GST Authority Orders Details

The company received orders from two separate GST authorities, both relating to Input Tax Credit (ITC) violations:

Nature of Violations

Both orders were issued in Form GST DRC-07 under the Central Goods and Service Tax Act, 2017 and Gujarat Goods and Service Tax Act, 2017. The violations involve different aspects of ITC management:

First Order - Central GST Division

The larger order pertains to alleged wrong availment and utilization of ITC from suppliers whose registrations were cancelled. This includes:

• Suo-moto cancelled suppliers
• Ab-initio cancelled suppliers
• Short paid tax liability issues

Second Order - State Tax Enforcement

The second order addresses alleged inadmissible ITC received from non-existent suppliers, highlighting supply chain verification issues.

Company's Response and Impact Assessment

Parmeshwar Metal Limited has outlined its strategy to contest both orders through the appellate process. The company's position includes:

• Legal Action: Filing appeals before the First Appellate Authority against both adjudicating authority orders
• Merit Assessment: The company believes both demands lack merit and expects them to be set aside during appellate proceedings
• Operational Impact: No material impact anticipated on financial, operational, or other company activities

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of SEBI Listing Regulations. The communication was signed by Managing Director Shantilal Shah and submitted to BSE Limited with the company's scrip code 544330.

The company has provided comprehensive details as required under listing regulations, ensuring transparency regarding the GST authority actions and their potential implications for stakeholders.