Indag Rubber Limited Cleared of GST Proceedings by Rajasthan Tax Authority

Indag Rubber Limited , a prominent player in the rubber industry, has received a favorable outcome in its recent GST proceedings. The company announced that the Joint Commissioner of State Tax, Bhiwadi, Rajasthan, has dropped the proceedings under Section 73 of the GST Act, 2017, which were initiated through a show cause notice dated September 25, 2025.

Details of the GST Proceedings

The tax authority had initially demanded Rs. 1,07,59,703 in tax, interest, and penalty for the period April 2021-March 2022, citing an excess claim of Input Tax Credit (ITC). However, following the company's submission of a detailed reply, the authority decided to drop the proceedings entirely.

Financial Implications

Indag Rubber Limited has stated that this development has no impact on its:

Financials
Operations
Other activities

Importantly, the company is not required to pay any amount of GST, interest, or penalty as a result of this decision.

Disclosure and Compliance

In compliance with regulatory requirements, Indag Rubber Limited has made the following disclosures:

Particulars	Details
Type of Communication	Drop of proceedings against the Show Cause Notice
Date of Receipt	October 31, 2025
Issuing Authority	Joint Commissioner of State Tax, Bhiwadi, Rajasthan
Applicable Period	April 2021 - March 2022
Financial Implications	No impact on financials, operations, or other activities
Aberrations/Non-compliances	None identified
Penalties/Sanctions	None imposed

This outcome underscores the importance of proper documentation and timely response to regulatory inquiries. It also highlights the complex nature of GST compliance that companies must navigate in the Indian tax landscape.

For investors and stakeholders of Indag Rubber Limited, this resolution provides reassurance about the company's tax compliance practices and its ability to effectively address regulatory challenges.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.40%	-3.69%	+1.93%	-4.67%	-32.78%	+81.19%

Indag Rubber Limited , a prominent player in the rubber industry, has recently come under regulatory scrutiny. The company disclosed that it has received a Show Cause Notice (SCN) from the Joint Commissioner of State Tax, Bhiwadi, Rajasthan, under Section 73 of the GST Act, 2017 for the financial year 2021-22.

Details of the Notice

The Show Cause Notice proposes a total demand of Rs. 1.07 crore, which breaks down as follows:

Component	Amount (in Rs.)
GST Demand	59,11,926
Interest	42,56,586
Penalty	5,91,191
Total	1,07,59,703

Alleged Violations

The notice pertains to two main issues:

Excess claim of Input Tax Credit (ITC)
Claiming and utilizing blocked ITC under Section 17(5) of the GST Act

These alleged violations cover the period from April 2021 to March 2022.

Company's Response

Indag Rubber Limited has stated that it will file an appropriate response to the Show Cause Notice within the prescribed timelines. The company has expressed confidence that this notice will not have any major impact on its financial, operational, or other activities.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Indag Rubber Limited promptly disclosed this information to the BSE Limited on September 25, 2023.

About Indag Rubber Limited

Indag Rubber Limited, with its registered office in New Delhi, is known for its operations in the rubber industry. The company's manufacturing facility is located in Village Jhiriwala, Tehsil, Nalagarh, District Solan, Himachal Pradesh. Indag Rubber prides itself on maintaining ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, underscoring its commitment to quality, environmental management, and occupational health and safety standards.

As the situation develops, stakeholders will be keenly watching how Indag Rubber Limited addresses these regulatory concerns and manages any potential financial implications.