Shipping Corporation of India has received an official order from tax authorities confirming substantial relief in its tax proceedings, with the company securing a significant reduction in the disputed tax demand.

Official Order Details

The Joint Commissioner of State Tax (Appeal-VI), Mumbai, issued an order on March 11, 2026, providing formal confirmation of the tax demand reduction. The following table outlines the key financial figures:

Tax Component Breakdown

The order specifically details the tax components involved in both the original and revised demands:

Background and Dispute Nature

The tax dispute primarily relates to a mismatch of Input Tax Credit (ITC) with GSTR-2A filings. SCI had previously filed an appeal against the order issued by the Deputy Commissioner of State Tax with the Joint Commissioner of State Tax (Appeal-IV), Mumbai, following an earlier disclosure made in August 2024.

Company's Response and Next Steps

According to the official disclosure, SCI is currently reviewing the order in detail and evaluating its next course of action. The company stated it is exploring all possible options to contest the remaining demand, including filing an appeal against the order. SCI believes there is strong merit in its case for further relief.

Financial Impact

This development represents substantial financial relief for the state-owned shipping corporation, with the tax demand reduction of over ₹100 crores significantly improving the company's potential tax liability position. The reduction from ₹160.37 crores to ₹60.07 crores marks a decrease of approximately 62.5% in the original demand, providing greater financial clarity and reducing uncertainty regarding tax-related obligations.

Shipping Corporation of India Limited has received regulatory penalties from both major stock exchanges for failing to comply with board composition requirements under SEBI regulations. The Navratna public sector undertaking disclosed the fines through a regulatory filing dated February 28, 2026.

Regulatory Penalties Imposed

Both BSE Limited and National Stock Exchange of India Limited have imposed identical fines on the company for non-compliance with Regulation 17(1) of SEBI Listing Regulations related to board composition requirements.

Timeline of Events

The company received penalty notifications from both exchanges on February 27, 2026, with specific timestamps for each communication.

Company's Response and Mitigation Efforts

The Shipping Corporation of India emphasized its unique position as a Navratna Public Sector Undertaking, which affects its board appointment process. The company stated that it is actively coordinating with competent authorities for the appointment of requisite independent directors, including independent women directors, to ensure compliance with Regulation 17 of SEBI Listing Regulations.

Key aspects of the company's position include:

• Only the competent authority has powers to nominate directors on SCI's board
• The company is in the process of submitting request letters to both stock exchanges
• Coordination is ongoing with relevant authorities for appointment of independent directors

Financial Impact Assessment

The company has assessed that the regulatory action does not have significant impact on its financial, operational, or other activities, quantifiable in monetary terms to the extent possible. The total penalty of ₹10.86 lakh represents the combined fine from both exchanges for the board composition non-compliance.

Compliance Framework

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in accordance with the company's Policy for Determination of Materiality of Events/Information. Company Secretary and Compliance Officer Smt. Swapnita Vikas Yadav signed the regulatory filing, ensuring transparency with stakeholders regarding the penalty imposed by the stock exchanges.