UCAL Limited Receives Show Cause Notice from Tax Authorities Over GST Audit Discrepancies for FY 2022-23
UCAL Limited has received a Show Cause Notice (SCN) from the State Tax Officer, Audit-I Office of the Joint Commissioner (ST), Ambattur Assessment Circle. The notice pertains to the GST Audit conducted for the Financial Year 2022-23, and involves allegations regarding various discrepancies in tax compliance.The communication was received by UCAL Limited on August 12, 2026, and concerns the financial period FY 2022-23.
Allegations Detailed in Show Cause Notice
The authorities have alleged several discrepancies during the GST Audit. These issues span across different aspects of tax liability and input credit claims.A summary of the material contents and allegations identified by the authority are provided below:
| Area of Concern | Details/Allegation |
|---|---|
| Input Tax Credit (ITC) | Excessive claim related to the Import of Goods. |
| Taxable Supplies | Discrepancies regarding credit notes issued and debit notes issued on taxable supply. |
| Supply Types | Issues involving Non-GST Supply, Zero Rated Supply (Export), and SEZ Supplies without tax payment. |
| Credit Mechanisms | Concerns over Import Of Goods, ITC Received From ISD, FTC Reversal, Trade payable, Reverse Charge Mechanism, Claim of Ineligible ITC, ITC Difference, Un-reconciled GST Payment, and Un-reconciled Input Tax Credit. |
Penalty Demanded and Company's Response
The Show Cause Notice includes a demand for penalty totaling Rs. 6.48 Crores (including interest).Regarding the notice, UCAL Limited stated that at this stage, the SCN does not present any adverse impact on its financials or operations. The company firmly believes that the SCN holds no merits and is planning to file a detailed reply with justifications, facts, and figures before the GST Authority within the prescribed timelines of response.
UCAL Limited confirmed that there were no other relevant impacts noted in connection with this communication.
UCAL Stock Price Movement
On Wednesday, UCAL Limited shares shed 1.19% to settle at ₹116.02 after trading closed lower from its previous close. The stock traded for a total of 2,470 shares during the session.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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