Neogen Chemicals Receives Consolidated Tax Demand Notice for FY 2022-23
Neogen Chemicals Limited has received a show cause cum demand notice from the Office of the Commissioner CGST and Central Excise Commissionerate, Belapur, concerning tax liabilities for the financial year 2022-23.The company received the notice on September 5, 2026. The notice includes a consolidated tax demand amounting to Rs. 6,97,08,028/-, comprising applicable interest and penalty, which relates to violations under Section 73 of the CGST Act, 2017 and MGST Act, 2017, read with Section 20 of IGST Act, 2017.
The company has stated that it is currently evaluating the notice and intends to file a detailed reply with the adjudicating authority within the prescribed timelines. Neogen Chemicals also confirmed that it will pursue all available legal remedies. Management stated that there is no material impact on the financial or operational activities of the Company, apart from the amount specified in the notice.
Key aspects of the tax demand and the company's prior action are detailed below:
| Component | Details |
|---|---|
| Total Tax Demand | Rs. 6,97,08,028/- |
| Principal Tax Amount | Rs. 1,38,95,418/- (Paid via DRC-03 on 28/12/2022 and appropriated) |
| Nature of Violations | Tax mismatch between GSTR-1 and GSTR-3B (leading to interest/penalty demand); Excess ITC on import of goods (GSTR-3B vs. GSTR-2B, concerning lack of valid BOEs for FY 2022-23); and Excess ITC (GSTR-3B vs. GSTR-2A, regarding unsubstantiated SEZ / Import claim). |
The Company confirmed that it is taking appropriate actions in due course of time, as deemed fit and in the interest of Neogen Chemicals Limited.
NEOGEN Stock Price Movement
As of 9:18 AM, shares of Neogen Chemicals Limited are slipping by 0.13% in live trading, currently trading at ₹2135.2. The stock has seen limited intraday movement, with a traded volume recorded at 1,303.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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