Finolex Cables Limited has informed stock exchanges about receiving a significant GST demand order from tax authorities in Chandigarh. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations.

GST Demand Details

The Commercial Tax Officer, Ward-5, Chandigarh issued an order for a GST demand of ₹22.01 crores for the financial year 2021-22. The demand is related to Input Tax Credit (ITC) mismatch and HSN code discrepancies.

Nature of Alleged Violations

The tax demand stems from alleged discrepancies in Input Tax Credit (ITC) claims and other related issues. Specifically, authorities allege that Finolex Cables claimed credit for transactions where suppliers uploaded HSN (Harmonized System of Nomenclature) codes different from those used by the company. This mismatch in HSN codes between the company's records and supplier declarations forms the basis of the tax demand.

Company's Response and Next Steps

Finolex Cables has the option to file an appeal before the Appellate Authority to contest the order. The company has not indicated its immediate course of action regarding the appeal process in the current disclosure.

Impact Assessment

Despite the substantial monetary value of the demand, Finolex Cables has stated that this tax demand is not expected to have a major impact on the company's operations. The company's assessment suggests that its business activities and operational capabilities will continue without significant disruption from this regulatory matter.

Regulatory Compliance

The disclosure was made in compliance with SEBI Listing Regulations, specifically under Regulation 30 and related circulars. This ensures transparency with stakeholders regarding material developments that could potentially affect the company's financial position or operations.

Finolex Cables Limited has received a GST order from Uttar Pradesh tax authorities, confirming a demand of ₹22.58 lakh related to Input Tax Credit (ITC) discrepancies during the financial year 2021-22. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations.

GST Order Details

The Deputy Commissioner-GST, Lucknow, Uttar Pradesh issued the order, which was received by the company through email. The order confirms the demand under a Show Cause Notice that was previously issued for GST on mismatch of Input Tax Credit during FY 2021-22.

Nature of Alleged Violation

According to the GST authorities, the company allegedly took excess credit due to mismatch of Input Tax Credit with the GST Portal. This discrepancy was identified during the assessment of the company's GST filings for the financial year 2021-22.

The Show Cause Notice had originally raised questions about the ITC claimed by the company, and the recent order has now confirmed the tax department's position on the matter.

Company's Position and Impact Assessment

Finolex Cables has stated that the GST demand will have minimal impact on the company's operations. The total amount of ₹22.58 lakh represents a relatively small sum for the cable manufacturing company.

The company retains the option to file an appeal before the Appellate Authority to contest the order. This provides an avenue for Finolex Cables to present its case and seek relief from the confirmed demand.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as per the requirements of SEBI Circular reference SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

This regulatory filing ensures transparency with stakeholders regarding any material developments that could potentially impact the company's financial position or operations.