Mukka Proteins Limited, a prominent player in the protein industry, has received a significant reduction in its Goods and Services Tax (GST) demand from the Gujarat tax authorities. The company has seen its GST liability cut dramatically from ₹141.06 crore to a mere ₹27.16 lakh, marking a reduction of over 99%.

Substantial Reduction in GST Demand

According to a regulatory filing by Mukka Proteins, the company received a Show Cause Notice (SCN) from the Office of the Assistant Commissioner of State Tax, Porbandar, Gujarat. This notice came in response to the company's reply filed on September 23, addressing an earlier intimation of a proposed GST demand of ₹141.06 crore for the financial year 2021-22.

The revised demand in the SCN breaks down as follows:

The total revised demand of ₹27.16 lakh also includes applicable interest and penalties.

Company's Stance and Future Actions

Despite the substantial reduction in the demand amount, Mukka Proteins has stated its intention to contest the revised figure. The company maintains that the revised demand is "untenable in law and on facts" and plans to challenge it before the appropriate authorities.

Mehaboobsab Mahmadgous Chalyal, Company Secretary & Compliance Officer of Mukka Proteins Limited, stated in the regulatory filing, "The Company strongly believes that the revised demand is also untenable in law and on facts and will be suitably contested before the authorities. The Company continues to maintain that no material financial liability will arise from these proceedings."

Background of the Case

The GST dispute dates back to September 18, when Mukka Proteins first received an intimation in Form DRC-01A from the State Tax Officer, Porbandar. The initial proposed demand of ₹141.06 crore was based on alleged discrepancies in GST returns for the financial year 2021-22.

In response, the company filed a detailed reply on September 23, denying the allegations and asserting that all tax liabilities had been duly discharged. The company also mentioned that reconciliations had been submitted and certain voluntary payments had already been made where applicable.

Implications for Investors

While the drastic reduction in the GST demand is a positive development for Mukka Proteins, the company's decision to contest the revised amount suggests ongoing uncertainty regarding its tax liabilities. Investors and market watchers will likely keep a close eye on further developments in this case, as the final outcome could impact the company's financial position.

As Mukka Proteins navigates this tax issue, stakeholders will be keen to see how it may affect the company's operations and financial performance in the coming quarters.

Mukka Proteins Limited , a prominent player in the protein industry, has significantly broadened its business horizons following shareholder approval at its 15th Annual General Meeting (AGM) held on September 18, 2025. The company's Memorandum of Association has been amended to include four new strategic business areas, marking a bold step towards diversification and sustainable growth.

Expanded Business Scope

The newly approved amendments to Mukka Proteins' Memorandum of Association outline the following additions to the company's business scope:

1. Insect-Based Products: The company will now engage in the manufacturing and distribution of ingredients derived from insects for human consumption, animal feeds, and medical preparations. This move aligns with the growing global interest in alternative protein sources and sustainable food solutions.

2. Waste Management Services: Mukka Proteins is set to enter the waste management sector, focusing on the treatment of various types of waste, including plastic, metal, organic, and food waste. The company aims to convert these materials into value-added products, contributing to circular economy initiatives.

3. Agricultural Chemicals and Fertilizers: The company will expand into the production and distribution of humic acid, fulvic acid, organic fertilizers, and agricultural chemicals. This venture is expected to cater to the increasing demand for organic and sustainable farming solutions.

4. Comprehensive Agricultural Operations: Mukka Proteins will now engage in a wide range of agricultural activities, including cultivation, processing, marketing, and trading of various agricultural products and commodities. The scope also covers allied agri-services such as farm mechanization, agricultural consultancy, soil testing, and contract farming operations.

Global Expansion and Operational Flexibility

Notably, the amended Memorandum of Association allows Mukka Proteins to conduct these new business activities both within India and internationally. The company has the flexibility to operate through subsidiaries, associates, or joint ventures, potentially paving the way for global partnerships and expansion.

Strategic Diversification

This strategic diversification represents a significant shift for Mukka Proteins, traditionally known for its focus on protein-based products. The move into insect-based ingredients, waste management, and comprehensive agricultural operations signals the company's intent to capitalize on emerging trends in sustainable food production, environmental management, and agricultural technology.

Conclusion

The expansion of Mukka Proteins Limited's business scope reflects the company's adaptability to changing market demands and its commitment to sustainable business practices. As the company ventures into these new areas, stakeholders will be keen to observe how these diversified operations impact Mukka Proteins' growth trajectory and market position in the coming years.

Investors and industry observers will likely monitor the implementation of these new business lines and their potential to create additional value streams for the company. The success of these ventures could position Mukka Proteins as a more diversified and resilient player in the evolving landscape of food, agriculture, and environmental solutions.