JTL Industries Limited has received a GST demand notice from tax authorities, the company informed exchanges on December 24, 2025. The steel pipes manufacturer disclosed receiving an adjudication of Show Cause Notice from the Assistant Commissioner of Central Goods & Services Tax Division-I, Derabassi.

GST Demand Details

The tax demand comprises multiple components as outlined by the company:

The penalty has been imposed under Section 74(1) of the CGST Act, 2017 and Section 20 of the IGST Act, 2017, subject to the statutory option of availing relief under Section 74(11) of the CGST Act, 2017.

Company's Response and Position

JTL Industries has disputed the demand, stating it does not admit any violation. The company clarified that the demand order is raised by the department based on audit findings for the specified period. According to legal opinion obtained by the company, the aforesaid demand has no merit in terms of Circular No. 204/16/2023-GST dated October 27, 2023.

The company explained that this circular provides clarification on the taxability and valuation of personal guarantees by directors and corporate guarantees between related persons, including holding and subsidiary companies. JTL Industries stated it will make its submissions before the Adjudicating Authority within the given timelines.

Financial Impact Assessment

The company has assessed that the demand will not have any impact on its profitability, financial position, or operations. This disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The regulatory filing was signed by Amrender Kumar Yadav, Company Secretary and Compliance Officer, and submitted to both BSE Limited and National Stock Exchange of India Limited as per compliance requirements.

JTL Industries has announced a strategic merger with a private entity, marking a significant expansion initiative for the steel sector company. The transaction is designed to enhance the company's market reach and strengthen its competitive positioning in the industry.

Transaction Overview

The merger represents a key strategic move for JTL Industries as it seeks to broaden its operational capabilities and market presence. While specific financial details of the transaction have not been disclosed, the merger is positioned as a growth-oriented initiative aimed at expanding the company's footprint.

Expected Timeline

The transaction is anticipated to close by Q2 2024, subject to standard regulatory approvals and customary closing conditions. This timeline provides both entities with adequate time to complete necessary due diligence processes and obtain required regulatory clearances.

Strategic Implications

The merger aligns with JTL Industries' growth strategy and represents an important step in the company's expansion plans. By partnering with a private entity, the company aims to leverage complementary strengths and capabilities to enhance its market position. The transaction is expected to create synergies that will benefit the combined entity's operational efficiency and market competitiveness.

This corporate development reflects JTL Industries' commitment to strategic growth and its focus on expanding its presence in the steel sector through targeted partnerships and acquisitions.