Shilchar Technologies Limited has disclosed to stock exchanges that it received a GST demand order from tax authorities, involving significant financial implications. The company received the order on April 1, 2026, through speed post and promptly informed BSE and NSE under regulatory compliance requirements.

GST Demand Order Details

The Joint Commissioner of Central Tax, CGST and Central Excise, Vadodara-I issued the order dated March 26, 2026. The demand stems from audit observations relating to classification issues, reconciliation of GST returns, reconciliation with financial statements, and certain procedural aspects.

Original Show Cause Notice

The original Show Cause Notice had demanded GST of Rs. 3,57,97,625/- along with interest of Rs. 2,78,699/- and penalty of Rs. 2,00,000/-. However, the final order confirmed a reduced tax demand of Rs. 3,21,20,305/- with interest of Rs. 2,13,023/- and penalty of Rs. 50,000/- under Section 74 of the CGST Act, 2017.

Company's Prior Payments

Shilchar Technologies has already made partial payments that have been appropriated in the order:

Legal Provisions and Penalties

The interest on the tax demand has been levied under Section 50(1)/(3) of the CGST Act, 2017, read with similar provisions of Gujarat GST Act and Section 20 of the IGST Act, 2017. The substantial penalty of Rs. 3,18,98,805/- has been imposed under Section 74 of the CGST Act, 2017.

Company's Response and Financial Impact

Based on its assessment, the company believes it has a strong case on merits and does not expect any material impact on its financial position. Shilchar Technologies is in the process of challenging the order before the First Appellate Authority, considering the entire demand erroneous under the relevant provisions of the Act.

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Regulations, providing detailed information as required under SEBI circular dated July 13, 2023.

Shilchar Technologies has announced the cessation of Mr. Zarksis Jahangir Parabia as Independent Director, effective from the close of business hours on March 13, 2026. The departure follows the completion of his second consecutive five-year term as an Independent Director of the company.

Regulatory Compliance and Filing Details

The company has formally notified both BSE Limited and National Stock Exchange of India Limited about this board change through proper regulatory channels. The intimation was filed pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full compliance with disclosure requirements.

Director Cessation Details

The following table provides comprehensive details about the directorship cessation as required under SEBI regulations:

Regulatory Framework

The cessation aligns with SEBI guidelines that limit the tenure of Independent Directors. Mr. Parabia completed his second term of five consecutive years, which represents the maximum permissible tenure for Independent Directors under current regulations. This ensures adherence to corporate governance norms designed to maintain board independence and effectiveness.

Company Secretary Confirmation

Vishnupriya Civichan, Company Secretary and Compliance Officer, digitally signed the regulatory filing on March 13, 2026. The company has requested stock exchanges to treat this information as compliance under applicable provisions of SEBI Listing Regulations, ensuring transparent communication with stakeholders and regulatory bodies.