Shahlon Silk Industries Receives Show Cause Notice Regarding GST Penalty
Shahlon Silk Industries Ltd. announced today that it has received a Show Cause Notice from the office of the Additional Commissioner, Surat Zonal Unit, Gujarat, GST Department. The notice, pertaining to financial years 2023-24 and 2024-25, was received on March 25, 2026.The notice was issued under Section 122 of the Central Goods and Services Tax (CGST) Act, 2017, and relates to an allegation of passing on ineligible Input Tax Credit (ITC). The proposed penalty amounts to Rs. 4,23,77,938 for the financial year 2023-24 and Rs. 1,26,66,464 for the financial year 2024-25, totaling Rs. 5,50,44,402.
According to the company, the Show Cause Notice will not have an immediate impact on its financial and operational activities. Shahlon Silk Industries is currently analyzing the contents of the notice and plans to submit a response in due course.
| Detail | Information |
|---|---|
| Authority | Office of the Additional Commissioner, Surat Zonal Unit, Gujarat |
| Nature of Action | Issuance of Show Cause Notice under Section 122 of the CGST Act, 2017 |
| Date of Notice | March 25, 2026 |
| Details of Alleged Violation | Allegation of passing on Ineligible ITC |
| Proposed Penalty (Rs.) | 4,23,77,938 (F.Y. 2023-24) & 1,26,66,464 (F.Y. 2024-25), totaling 5,50,44,402 |
| Impact on Financial/Operational Activities | Nil |
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