Elitecon International Ltd Receives Show Cause Notice from DGGI Concerning GST Matters
Elitecon International Ltd has received a show cause notice from the Directorate General of GST Intelligence (DGGI) Lucknow Zonal Unit regarding GST compliance. The notice was issued via email on April 07, 2026, covering provisions under Section 74 of The CGST Act, 2017, alongside sections from the UP GST Act, 2017, the IGST Act, 2017, and Section 11 of The Goods And Services Tax (Compensation To States) Act, 2017.The scrutiny relates to several aspects of GST provisions, including the valuation of goods under Section 15, eligibility and availment of input tax credit under Section 16 read with Rule 36, classification and description of goods in invoices under Section 31, and maintenance of books of accounts and records under Section 35 read with Rule 56. Furthermore, the notice addresses reporting in returns under Section 37 read with Rule 59 and Section 39 read with Rule 61, input tax credit availment under Section 41 read with Rule 36, discharge of tax liability under Section 49 read with Rules 85 to 87, and refund claims of IGST on export transactions according to Section 54 read with Rule 89.
The company stated that the highlighted matters pertain to differences in interpretation and application of GST provisions related to classification, input tax credit, return filing, and refund claims. Elitecon International Limited is reportedly reviewing the notice in detail and plans to take appropriate steps, including submitting a response within the stipulated timelines.
The show cause notice proposes certain demands amounting to tax, interest, and penalty, along with a recovery of refund. The quantifiable preliminary financial implications mentioned are detailed as follows:
| Component | Approximate Amount |
|---|---|
| Proposed Tax, Interest, Penalty | 221.89 Crore |
| Proposed Interest, Penalty | 129.18 Crore |
| Proposed Recovery of Refund | 91.22 Crore |
The company noted that these proposed demands are preliminary, and no final liability has been determined, as the matter is currently at the adjudication stage. Consequently, the financial impact remains contingent upon the outcome of the adjudication proceedings. The Company stated it is examining the notice and will pursue appropriate legal measures to defend its position.
Stock Price Movement
At the close of trade on Friday, Elitecon International Ltd shares settled at ₹39.93, representing an uptick of 1.14% for the day. The stock traversed its trading day between a low of ₹39.81 and an intraday high of ₹40.89.Source:
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