News Stocks Atul Limited Receives ₹16.77 Crore GST Demand and Penalty Notice from Surat AuthoritiesAtul Limited Receives ₹16.77 Crore GST Demand and Penalty Notice from Surat Authorities
Atul Limited received a GST demand of ₹8.33 crores and penalty of ₹8.44 crores from Joint Commissioner GST & Central Excise, Surat, totaling ₹16.77 crores. The order alleges incorrect input tax credit availment for construction-related goods and services during FY 2018-19 to 2022-23. The company states no material impact on operations and plans to appeal the decision.
*this image is generated using AI for illustrative purposes only.
Atul Limited has disclosed receiving a substantial GST demand and penalty order from tax authorities, marking a significant regulatory development for the chemical company. The order was issued by the Joint Commissioner GST & Central Excise, Surat, and received by the company on December 31, 2025.
GST Demand and Penalty Details
The tax authorities have imposed significant financial obligations on Atul Limited through their recent order. The demand covers multiple financial years and relates to specific tax credit practices.
| Component: | Amount |
|---|---|
| GST Demand: | ₹8.33 crores |
| Penalty: | ₹8.44 crores |
| Total Liability: | ₹16.77 crores |
| Period Covered: | FY 2018-19 to 2022-23 |
Nature of Alleged Violations
The order under Section 74 of the GST Act alleges incorrect availment of input tax credit by Atul Limited. The authorities claim the company improperly availed input tax credit against goods and services used for construction and building related work during the specified period from FY 2018-19 to 2022-23.
The Joint Commissioner GST & Central Excise, Surat issued the order, which was made available through the authority's portal. The company received access to the complete order on December 31, 2025, at 6:06 pm.
Company's Response and Impact Assessment
Atul Limited has assessed the potential impact of this GST order on its operations and financial position. The company has stated that there is no material impact on the financials, operations, or other activities due to this order.
Key aspects of the company's position include:
- The order is appealable under GST regulations
- No immediate material impact on company operations
- Company plans to pursue available legal remedies
Regulatory Compliance and Disclosure
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Chief Compliance Officer Lalit Patni signed the regulatory filing, ensuring compliance with stock exchange notification requirements.
The company has informed both BSE Limited and National Stock Exchange of India Limited about this development through their respective listing portals, maintaining transparency with investors and regulatory authorities regarding this significant tax matter.
17
