<h1>Sona BLW Precision Forgings Limited Receives GST Order Demanding Tax Reversal and Penalty</h1>
Sona BLW Precision Forgings Limited has received an order from the Office of the Commissioner of GST & Central Excise, Chennai, concerning a demand for reversal or recovery of Input Tax Credit (ITC) and the imposition of a penalty. The order was received by the company on August 6, 2026, at 8:25 p.m. (IST).
The Joint Commissioner of Central Tax issued the order detailing demands under Section 73(9) read with Section 122(2)(a) of the Central Goods and Services Tax (CGST)/TNGST Act 2017. The actions initiated by the authority involve a demand for INR 2,15,03,832/- related to ITC recovery, along with applicable interest thereon, and a penalty imposed amounting to INR 21,05,192/-.
The order alleges non-reversal of Input Tax Credit claimed in respect of excess GST charged by certain suppliers. This alleged violation pertains to the period spanning from April 2022 to March 2024.
A summary of the key details relating to the tax action is presented below:
| Detail | Information |
|---|---|
| Issuing Authority | Office of the Commissioner of GST & Central Excise, Chennai |
| Nature of Action | Demand for reversal/recovery of Input Tax Credit and penalty imposition |
| Amount Demanded (ITC) | INR 2,15,03,832/- |
| Penalty Imposed | INR 21,05,192/- |
| Period Covered | April 2022 to March 2024 |
In response to the order, Sona BLW Precision Forgings Limited is currently evaluating the findings and plans to pursue appropriate legal remedies, including filing an appeal. Based on its preliminary assessment, the company stated that no material adverse financial, operational, or other impact is expected from this matter.
SONACOMS Stock Price Movement
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