Lamosaic India Receives Show Cause Notice from DGGI Over Allegations of Inadmissible ITC
Lamosaic India Limited has received a Show Cause Notice (SCN) from the Directorate General of Goods and Services Tax Intelligence (DGGI), Pune Zonal Unit, concerning allegations related to inadmissible Input Tax Credit (ITC). The communication was received by the company on July 10, 2026.The SCN relates to transactions during the period spanning July 2023 to June 2025.
Allegations of Inadmissible ITC
The DGGI, Pune Zonal Unit, has initiated the proceedings, alleging contraventions related to ITC in the company's operations. The notice calls upon Lamosaic India Limited to provide an explanation as to why appropriate demand and penalty should not be initiated under the Central Goods and Services Tax Act, 2017 and associated rules.The allegations include:
- Inadmissible ITC availed and utilized: Amounting to Rs. 32,11,82,822/-
- Inadmissible ITC passed to recipients: Amounting to Rs. 32,80,76,438/-
Company Response and Next Steps
Lamosaic India Limited confirmed that it is currently reviewing the Show Cause Notice in consultation with its Legal and Tax Advisors. The company stated that it will take necessary actions in accordance with applicable laws and plans to file a detailed reply before the competent authority within the prescribed timelines.Regarding the immediate impact, the company indicated that while the SCN outlines serious allegations of inadmissible ITC availed and utilized during the specified period, the financial implications are currently not ascertainable, as no final liability has been determined.
As of the date of receipt of the communication, no penalty, restriction, or sanction had been imposed by the DGGI; the notice serves as a request for explanation.
LAMOSAIC Stock Price Movement
Shares of Lamosaic India Limited slipped on Friday, shedding 4.57% to close at ₹47 following the day’s trading session. The stock saw a volume of 27,000 shares traded, coming after previously hitting its 52-week high near ₹51.4.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.
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