Mukka Proteins Limited , a prominent player in the protein industry, has been served with a substantial Goods and Services Tax (GST) demand notice amounting to ₹141.06 crore for the financial year 2021-22. The notice, issued by the State Tax Officer in Porbandar, Gujarat, represents a significant tax liability that the company must address.

Details of the GST Demand

According to the company's disclosure to the stock exchanges, the GST demand breaks down as follows:

Reasons for the Demand

The State Tax Officer has cited several discrepancies in Mukka Proteins' tax filings for FY 2021-22, including:

1. Inconsistencies in turnover reporting
2. Short payment of GST
3. Differences in reconciliation between GSTR-1, GSTR-3B, and GSTR-9
4. Excess input tax credit availed
5. Ineligible ITC under Section 17(5)
6. Late filing of GSTR-1

Company's Response

Mukka Proteins has acknowledged receipt of the intimation in Form DRC-01A under Section 73 of the CGST/GGST Act. The company stated that it is currently examining the matter and will take appropriate action within the stipulated timeframe.

In its communication to the stock exchanges, Mukka Proteins expressed its view that the demand is not maintainable. The company is evaluating all options, including the possibility of filing an appeal against the demand.

Potential Impact

While the GST demand represents a substantial sum, Mukka Proteins has indicated that it does not anticipate any significant impact on its financials, operations, or other activities at this stage. However, the resolution of this tax issue will be crucial for the company's financial planning and regulatory compliance going forward.

Investors and stakeholders will likely keep a close watch on how Mukka Proteins navigates this tax challenge and its potential implications for the company's financial health in the coming months.

Mukka Proteins Limited , a prominent player in the Indian protein industry, has recently come under scrutiny from tax authorities, facing significant financial implications. The company has disclosed receiving two tax notices with substantial penalties, totaling 78.20 million rupees.

Breakdown of Tax Notices

The tax notices, as reported by the company, are structured as follows:

1. First Notice: Carries a penalty of 34.49 million rupees
2. Second Notice: Involves a penalty of 43.68 million rupees

GST Intelligence Allegations

According to the company's regulatory filing with the stock exchanges, these notices stem from investigations by the Directorate General of Goods & Services Tax Intelligence (DGGI), Belagavi Zonal Unit. The DGGI has raised concerns over Mukka Proteins' Input Tax Credit (ITC) claims related to its Initial Public Offering (IPO) expenses.

Disputed Time Periods and Amounts

The DGGI's allegations cover two distinct periods:

The total amount, including tax, interest, and penalties, comes to 78,168,064 rupees, closely aligning with the reported 78.20 million rupees in penalties.

Company's Stance and Next Steps

Mukka Proteins has stated that it is currently examining the matter. The company's official statement indicates:

"Based on Company's assessment, the aforesaid demand is not maintainable and the Company is evaluating all options including filing an appeal against the said demand."

Furthermore, Mukka Proteins has expressed that it does not anticipate any significant impact on its financials, operations, or other activities as a result of these notices.

Regulatory Compliance

The company has duly informed the National Stock Exchange of India Limited and BSE Limited about these notices, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the situation unfolds, stakeholders will be keenly watching how Mukka Proteins navigates these tax challenges and what implications, if any, they may have on the company's financial health and market position.