Taparia Tools Limited , a prominent tool manufacturer based in Nashik, has received a Show Cause cum Demand Notice from the Commissioner of Central GST & Central Excise, Nashik Commissionerate. The notice, dated September 12, 2025, alleges ineligible input tax credit amounting to ₹1,30,76,422.00 for the period from FY 2019-20 to FY 2023-24.

Details of the GST Notice

The notice, issued under Section 122 of the CGST Act, 2017, questions the eligibility of input tax credit claimed by Taparia Tools over a five-year period. The company, known for its wide range of hand tools and equipment, now faces scrutiny over its GST compliance.

Company's Response

In response to the notice, Taparia Tools has stated that it plans to submit an appropriate reply to the concerned authority within the prescribed timeframe. The company maintains its stance on compliance, affirming that it abides by all applicable rules and regulations under the law.

Regulatory Compliance

In line with its obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Taparia Tools has promptly disclosed this development to the BSE Limited.

Management's Statement

Vinayak Shrikrishna Datey, Company Secretary of Taparia Tools Limited, stated in the regulatory filing, "The Company will keep the Exchange informed of any material developments in this matter." This commitment to transparency underscores the company's approach to addressing the GST notice.

Potential Impact

While the alleged ineligible input tax credit of ₹1.31 crore is significant, the full impact on Taparia Tools' financials remains to be seen. The outcome will likely depend on the company's response and the subsequent assessment by the GST authorities.

Investor Considerations

Shareholders and potential investors of Taparia Tools Limited should closely monitor further developments regarding this GST notice. The resolution of this matter could have implications for the company's financial position and regulatory compliance status.

Taparia Tools Limited, with its registered office and works located at 52 & 528, MIDC Area, Satpur, Nashik - 422007, continues to operate its business as usual while addressing this regulatory challenge. The company's management has expressed confidence in its compliance practices and is prepared to engage with the tax authorities to resolve the matter.

As this situation unfolds, stakeholders are advised to stay tuned for updates from the company through official channels and regulatory filings.

Taparia Tools Limited , a prominent player in the tools manufacturing sector, has reported a significant change in its shareholding pattern. Rajdularidevi Taparia, a member of the company's promoter group, has acquired a substantial stake in the company through transmission following the demise of her husband, Late Shri Harnarayan Taparia.

Key Details of the Transaction

• Acquisition: Rajdularidevi Taparia acquired 18,23,250 equity shares of Taparia Tools Limited.
• Shareholding Percentage: The acquired shares represent 12.01% of the company's total voting capital.
• Mode of Transfer: The acquisition was completed via off-market transfer through transmission.
• Date of Transaction: August 5, 2025
• Total Shareholding: Post-acquisition, Rajdularidevi Taparia's total shareholding stands at 12.01% of the company's equity share capital.

Regulatory Compliance

The transaction was disclosed in compliance with the Securities and Exchange Board of India (SEBI) regulations regarding substantial acquisition of shares and takeovers. Taparia Tools Limited has duly submitted the required disclosures to the BSE Limited, where its shares are listed.

Company Background

Taparia Tools Limited, with its registered office in Nashik, Maharashtra, is known for its range of hand tools and equipment. The company, incorporated in 1965, has been a significant player in the Indian tools manufacturing industry.

Implications of the Transaction

This transmission of shares within the promoter group does not alter the overall promoter holding in the company. However, it represents a significant change in the individual shareholding pattern within the promoter group following the unfortunate demise of Late Shri Harnarayan Taparia.

The disclosure of this transaction ensures transparency for the company's shareholders and the market at large, in line with SEBI's regulatory requirements for listed entities.

Investors and market participants are advised to take note of this change in shareholding structure, although it does not impact the total promoter holding or trigger any open offer requirements under SEBI regulations.