Orkla India Receives Show Cause Notice Regarding GST, Faces Demand of Rs 8,40,82,951
Orkla India Limited has received a Show Cause Notice (SCN) from the Commercial Taxes Department concerning issues related to the TNGST and CGST Acts. The notice proposes a total demand amounting to Rs 8,40,82,951/- for the Financial Year 2023-24.The SCN, received by the company on July 20, 2026, was issued by the Office of the Assistant Commissioner (ST) in Chennai. The demand encompasses a tax liability of Rs 5,23,57,426/-, along with proposed interest amounting to Rs 2,64,39,783/- and a penalty of Rs 52,85,742/-.
The allegations raised by the Commercial Taxes Department relate primarily to Input Tax Credit (ITC) matters, the reversal of common ITC under Section 17 read with Rules 42 and 43, reconciliation of exempt supplies, credit notes, and transactions involving related or distinct persons. These concerns arise from the Department's interpretation and reconciliation of information disclosed in various GST returns and statements filed by Orkla India Limited.
The total financial implication arising from the notice is Rs 8,40,82,951/-.
Key details regarding the regulatory correspondence are presented below:
| Particulars | Details |
|---|---|
| Type of Communication | Show Cause Notice (SCN) in Form GST DRC-01 dated July 20, 2026, issued under Section 73 of the TNGST Act, 2017 and the CGST Act, 2017. |
| Period Applicable | Financial Year 2023-24. |
| Total Proposed Demand | Rs 8,40,82,951/-. |
| Penalty Imposed | Rs 52,85,742/-. |
In response to the SCN, Orkla India Limited has stated that it is in the process of evaluating the allegations contained in the notice. The company is currently preparing and submitting detailed objections along with supporting documentation before the relevant authorities within the prescribed timelines, while also assessing available legal options under applicable laws.
ORKLAINDIA Stock Price Movement
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