Axel Polymers Limited has received a significant GST show cause notice from tax authorities, alleging wrongful input tax credit availment worth ₹31.57 crore. The company disclosed this development to BSE Limited under Regulation 30 of SEBI listing regulations on 04.02.2026.

Show Cause Notice Details

The notice details and timeline are as follows:

Allegations and Financial Impact

The GST authorities have made specific allegations against the company's input tax credit practices. According to the notice, Axel Polymers allegedly wrongfully availed input tax credit without the physical receipt of inward supplies of goods and further passed on such input tax credit without any actual supply of goods during the specified period.

The financial implications are substantial:

Company's Response Strategy

Axel Polymers has outlined its response approach to contest the allegations. The company is evaluating appropriate legal remedies, including the option of filing a writ petition before the jurisdictional Gujarat High Court against the notice. Company Secretary and Compliance Officer Ashish Chaudhary confirmed that expert legal counsel has been sought to pursue the matter in accordance with law.

Legal Position and Business Impact

The company maintains that the proposed demand appears contrary to CBIC Circular No. 171/03/2022-GST dated 06 July 2022, suggesting the input tax credit demand is not legally tenable or sustainable. Management has clarified that this development has no impact on routine operations and there is no immediate financial impact on the company pending the outcome of the proposed legal petition.

This notice follows previous GST-related communications, with the company having made earlier intimations dated 04.07.2024 and 24.07.2024 regarding GST matters. The company has committed to keeping the stock exchange informed about further developments in this matter.

Axel Polymers Limited recently witnessed a significant change in its promoter shareholding. Aarasp Bodhanwala, a Promoter and Director of the company, has reduced his stake through an open market transaction.

Transaction Details

Impact on Shareholding

The transaction resulted in a decrease of 0.72 percentage points in Bodhanwala's shareholding in Axel Polymers Limited.

Regulatory Compliance

The company has duly reported this insider trading activity to the BSE Limited, in compliance with the Securities and Exchange Board of India (SEBI) (Prohibition of Insider Trading) Regulations, 2015. The disclosure was made using Form C, as required under Regulation 7(2) read with Regulation 6(2) of the SEBI regulations.

About Axel Polymers Limited

Axel Polymers Limited is listed on the BSE. The company's registered office is located in Vadodara, Gujarat. As a listed entity, Axel Polymers is subject to various regulatory requirements, including prompt disclosure of insider trading activities.

This transaction underscores the importance of transparency in the stock market, particularly concerning the trading activities of company insiders and promoters. Investors and market participants often closely monitor such transactions as they can provide insights into the confidence levels of company insiders.