Mukka Proteins GST Case Fully Resolved with Zero Demand After ₹141.06 Crore Notice

Mukka Proteins Limited , a prominent player in the protein industry, has successfully resolved its GST litigation matter with tax authorities issuing a final order showing zero demand. The company received the final order dated December 18, 2025, under Section 73 of the CGST/GGST Act, along with Form GST DRC-07, concluding all proceedings that began with a substantial ₹141.06 crore GST demand notice for FY 2021-22.

Timeline of GST Proceedings Resolution

The GST case underwent significant developments from the initial demand to final resolution:

Stage	Details	Amount
Initial Demand (Form DRC-01A)	GST demand from State Tax Officer, Porbandar	₹141.06 crore
Show Cause Notice (Form DRC-01)	Reduced demand after examination	₹27.16 lakh
Final Order (Form GST DRC-07)	All proceedings dropped	Zero demand

Original GST Demand Breakdown

The initial GST demand notice for FY 2021-22 had comprised multiple components:

Component	Amount (₹)
Total Tax Liability	77,77,89,576
Interest	55,50,22,117
Penalty	7,77,78,956
Late Fee	1,200
Original Total Demand	1,41,05,91,849

Issues Cited in Original Notice

The State Tax Officer had initially cited several discrepancies in Mukka Proteins' tax filings for FY 2021-22, including inconsistencies in turnover reporting, short payment of GST, differences in reconciliation between GSTR-1, GSTR-3B, and GSTR-9, excess input tax credit availed, ineligible ITC under Section 17(5), and late filing of GSTR-1.

Final Resolution Details

According to the company's latest disclosure to stock exchanges, the final order reflects nil demand with no tax, interest, penalty, or late fee payable by the company for FY 2021-22. The proceedings initiated pursuant to the Show Cause Notice have been concluded and dropped by the tax authorities. This complete resolution means no financial liability subsists against the company pursuant to the final order.

Impact on Company Operations

The successful resolution of this GST matter eliminates the potential financial burden that was initially estimated at over ₹141 crore. As Mukka Proteins had previously indicated, the company maintained that the original demand was not maintainable, and the final outcome validates this position. The litigation now stands fully resolved, providing clarity for the company's financial planning and regulatory compliance going forward.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+9.14%	-0.69%	-11.34%	-22.77%	-38.90%	-52.24%

Mukka Proteins has announced that its board of directors has approved the formation of a new company named MPL HRC Ecosolutions LLP. This strategic initiative marks the company's entry into the waste management sector, representing a significant expansion of its business operations.

New Venture Details

The newly approved entity, MPL HRC Ecosolutions LLP, will focus specifically on waste management initiatives. This development indicates Mukka Proteins' strategic diversification beyond its traditional business activities into environmental solutions.

Parameter	Details
New Company Name	MPL HRC Ecosolutions LLP
Business Focus	Waste Management
Approval Status	Board Approved

Strategic Implications

The board's decision to greenlight this new venture demonstrates the company's commitment to expanding its operational footprint. By entering the waste management sector, Mukka Proteins is positioning itself in the growing environmental solutions market.

This initiative reflects the company's strategic approach to business diversification and its focus on sustainable practices. The formation of MPL HRC Ecosolutions LLP represents a calculated move to explore new revenue streams while contributing to environmental management solutions.