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:

Original GST Demand Breakdown

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

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.

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.