Bannari Amman Sugars Receives Show Cause Notice Over Alleged Excess Input Tax Credit Availment
Bannari Amman Sugars Limited has received a Show Cause Notice from the GST authorities regarding an allegation of excess Input Tax Credit (ITC) availed. The notice pertains to transactions spanning the financial year 2020-21, covering the period from April 2020 to March 2021.The company was issued the notice by the Office of the Deputy Commissioner of Commercial Taxes (Audit)-3 in Mysuru. This action relates to discrepancies found when comparing the ITC reported in Form GSTR-9 against the ITC reflected in relevant GST records.
Bannari Amman Sugars Limited confirmed that it had previously submitted detailed replies to the tax authorities, providing supporting documents and reconciliation regarding the nature of the ITC. The company is currently examining the Show Cause Notice thoroughly and plans to submit a formal reply before the adjudicating authority within the stipulated time frame.
The financial implications outlined in the notice are as follows:
| Financial Particular | Proposed Amount |
|---|---|
| Tax proposed | ₹10,13,78,852/- |
| Interest proposed | ₹9,48,40,609/- (approx.) |
| Penalty proposed | ₹10,13,78,852/- |
| Total amount referred to in SCN | ₹29,75,98,313/- |
According to the company, no final adjudication or order has yet been passed. Bannari Amman Sugars Limited stated that it intends to contest the proceedings related to the proposed tax, interest, and penalty. The management currently does not anticipate any material impact on the operational activities of the Company.
BANARISUG Stock Price Movement
Bannari Amman Sugars Limited shares closed higher today, as the stock settled at ₹3617.4 after gaining 1.81%. The equity saw a wide trading session, peaking at a high of ₹3721 but remaining well above its intraday low of ₹3485.9.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.