Prince Pipes & Fittings has received a show cause cum demand notice of ₹65.93 crore from the Karnataka Goods and Services Tax department for the financial year 2022-23. The notice, issued under Section 73 of the CGST/KGST Act, 2017, pertains to alleged discrepancies in tax filings and input tax credit claims.

The intimation was filed with the stock exchanges on September 30, 2026. The notice was issued by the Office of the Commercial Tax Officer, DGSTO Dharwad, on September 29, 2026. The demand covers tax liabilities and interest accrued over the specified period.

Breakdown of the demand

The total demand of ₹65,93,632 comprises tax amounts and interest across three major GST heads. The Integrated Goods and Services Tax (IGST) component constitutes the largest share of the total liability.

Allegations and company response

The authority cited two primary grounds for the demand:

1. Excess outward tax reported in E-way bills compared to GSTR3B returns.
2. Excess Input Tax Credit (ITC) claimed in GSTR 3B that was not confirmed in GSTR 2A/2B or GSTR 9, along with ineligible ITC claims under Section 17(5).

In its disclosure, Prince Pipes stated that based on its assessment, the demand is not maintainable. The company is currently evaluating the matter and plans to submit a reply within the prescribed time limit. It further noted that it does not envisage any relevant impact on its financials, operations, or other activities.

What the numbers show

The interest component accounts for approximately 41% of the total demand amount. This high ratio suggests that the alleged discrepancies date back to FY23, allowing significant interest to accrue under the statutory provisions before the notice was issued in September 2026. The IGST portion alone exceeds ₹39 lakh, indicating that interstate transaction mismatches form the bulk of the disputed liability.

Prince Pipes & Fittings Limited will host two additional institutional investor meetings in late September 2026. The company scheduled interactions for September 28 and September 30, expanding its engagement calendar beyond the previously announced September 22 session.

The new disclosures were filed with the Bombay Stock Exchange and National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These sessions aim to provide updates to analysts and fund managers without sharing unpublished price-sensitive information or presentation materials.

Upcoming Meeting Schedule

The company confirmed that officials will conduct both one-to-one and group sessions during these events. The September 28 meeting is a physical event in Mumbai, while the September 30 interaction is virtual.

Previous Engagement Details

The company had earlier disclosed a physical meeting for Tuesday, September 22, 2026, at 10:00 am in Mumbai as part of the Anand Rathi Annual Flagship Conference G-200 Summit 2026. Officials from Prince Pipes & Fittings conducted both one-to-one and group sessions during that event.

Anand Gupta, Chief Financial Officer, signed the initial disclosure filed with the exchanges. Jyoti Sancheti, Company Secretary and Compliance Officer, signed the subsequent disclosures regarding the September 28 and September 30 meetings. The company noted that all scheduled meetings may change due to business exigencies.