Timex Group India faces GST notice for FY 2022-23
Timex Group India Limited received a GST scrutiny notice for FY 2022-23, alleging discrepancies in ITC and tax payments with a financial exposure of INR 2.64 crores. The company stated the queries are preliminary and will respond with legal counsel assistance.
*this image is generated using AI for illustrative purposes only.
Timex Group India Limited has received a scrutiny notice from the Office of the Superintendent, Central Goods and Services Tax, Range-5, Division-I, Noida, regarding discrepancies in its Goods and Services Tax (GST) returns for the Financial Year 2022-23. The communication, received on May 25, 2026, outlines a potential financial exposure of INR 2,64,20,074, excluding interest and penalties. The company clarified that the observations are preliminary queries and do not constitute a final determination of liability.
The notice, issued in Form GST ASMT-10, details four primary areas of concern. The authorities alleged an excess availment of input tax credit (ITC) due to reconciliation differences between various GST returns and underlying data. Additionally, the department flagged a short payment of tax concerning outward supplies, citing discrepancies between figures reported in GST returns and e-way bill (EWB-01) data.
Further, the notice questioned the availment of ineligible ITC for the place of supply outside Uttar Pradesh in certain transactions where the place of supply was interpreted differently. The authorities also required the company to furnish supporting documents and reconciliations to seek additional information and documentation, including credit notes, reversals, and export-related remittances.
Regulatory Disclosure
The intimation was submitted to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing confirmed that the company is assessing the matter with the assistance of legal counsel and intends to file an appropriate response within the prescribed timelines.
Financial Impact
The table below summarizes the key details of the scrutiny notice:
| S. No. | Particulars | Disclosure |
|---|---|---|
| a) | Name of the authority | Office of the Superintendent, Central Goods and Services Tax, Range-5, Division -I, Noida, GST Bhawan, C-232 A/2-A/3, Sector-48, Noida Uttar Pradesh-201301 |
| b) | Nature of action | Notice in Form GST ASMT-10 intimating discrepancies in the return after scrutiny for the Financial Year 2022-23 |
| c) | Date of receipt | May 25, 2026 |
| d) | Details of violation | Alleged excess availment of ITC, short payment of tax, ineligible ITC for place of supply, and requirement to furnish documents |
| e) | Financial impact | INR 2,64,20,074 (excluding interest and penalty) |
Historical Stock Returns for Timex Group
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +13.07% | +25.70% | +25.33% | +31.52% | +31.52% | +31.52% |
How will the legal costs and potential financial penalties affect Timex Group India's profitability in the upcoming fiscal year?
Could this scrutiny notice lead to similar audits for other financial years or trigger reviews of the company's subsidiaries?
What internal compliance changes is the company implementing to prevent future discrepancies between GST returns and e-way bill data?
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