Gujarat Ambuja Exports Limited has received another GST demand order, this time worth ₹48.08 lakh from tax authorities for the financial year 2021-22. The latest demand order was issued by the Assistant Commissioner of State Goods & Service Tax, Unit-5, Ahmedabad, and received by the company on December 26, 2025.

Latest GST Demand Details

The new demand order has been issued under Section 73(9) of the Central Goods and Service Tax Act, 2017, along with corresponding provisions of the Gujarat Goods and Services Tax Act, 2017 and Integrated Goods and Service Tax Act, 2017. The demand components are structured as follows:

The interest has been levied under Section 50 of the CGST Act 2017, while the tax liability determination falls under Section 73 of the act.

Nature of Current Tax Dispute

According to the company's regulatory filing, this latest demand has been raised in relation to excess Input Tax Credit (ITC) claimed as per the GST department's assessment. The tax authorities have determined aberrations and non-compliances related to these ITC claims during their examination for FY2021-22.

Previous GST Demand History

This marks the second significant GST demand received by Gujarat Ambuja Exports. Earlier, the company had received a GST demand order worth ₹12.34 lakh for FY2018-19, which was related to ineligible Input Tax Credit claims from cancelled, non-genuine and non-existent taxpayers.

Company's Response Strategy

Gujarat Ambuja Exports has maintained its position that the latest demand order has no material impact on the company's financials, operations or other activities. Based on their assessment of facts and prevailing law, the company views the demand order as arbitrary, unjustified, and unsustainable in law.

The company plans to file a necessary appeal with the appellate authority within the permissible timeline, similar to its approach with the previous GST demand.

Regulatory Compliance and Disclosure

The disclosure has been made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed compliance with Regulation 30(13) of SEBI Listing Regulations, stating that all information provided is true, correct and complete to the best of their knowledge and belief.

Gujarat Ambuja Exports has uploaded this intimation on its official website at www.ambujagroup.com and informed both BSE Limited and National Stock Exchange of India Limited about the latest development.

Gujarat Ambuja Exports Limited (GAEL) has released its financial results for the second quarter, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth

The company reported a significant increase in revenue, which rose to 14.87 billion rupees in Q2, up from 11.25 billion rupees in the same period last year. This represents a year-over-year growth of approximately 32.2%, indicating strong top-line performance.

Profit Decline

Despite the revenue growth, GAEL experienced a substantial decrease in net profit. The company's net profit for the quarter stood at 380.8 million rupees, down from 695 million rupees in the corresponding quarter of the previous year. This marks a decline of about 45.2% in net profit.

EBITDA and Margin Compression

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a decrease:

The EBITDA margin compressed significantly from 9.79% to 5.10%, indicating pressure on the company's operational efficiency.

Management Appointments

In a separate announcement, GAEL's Board of Directors approved the appointment of three new Additional Directors in the category of Non-Executive & Independent Directors, each for a term of five consecutive years, subject to shareholder approval:

1. Mr. Dukhabandhu Rath (DIN: 08965826)
2. Mr. Yogesh Ghanshyambhai Shah (DIN: 11203883)
3. Ms. Gauri Trivedi (DIN: 06502788)

These appointments may bring fresh perspectives and expertise to the company's board.

Conclusion

While Gujarat Ambuja Exports Limited has shown strong revenue growth in the second quarter, the decline in profitability and margin compression suggest challenges in maintaining cost efficiency. Investors and stakeholders will likely be watching closely to see how the company addresses these issues and leverages its revenue growth to improve bottom-line performance in the coming quarters.

The addition of new independent directors to the board may also signal the company's commitment to strengthening its corporate governance and bringing in diverse expertise to navigate the current business environment.