No Material Impact on Financials, Company Plans to Appeal
Mumbai, January 31, 2025 – FDC Limited (BSE: 531599 | NSE: FDC) has disclosed that it has received a demand notice from the Deputy Commissioner of State Tax, Kalbadevi, Mumbai (GST Department - Maharashtra State)under Section 73(9) of CGST/MGST Act 2017 and Section 20 of IGST Act 2017.
Key Highlights of the Notice:
| Details | Information |
|---|---|
| Authority Issuing Notice | Deputy Commissioner of State Tax, Kalbadevi, Mumbai (GST Department - Maharashtra State) |
| Alleged Violation | Mismatch of Input Tax Credit (ITC) between GSTR-3B and GSTR-2A and short payment due to misclassification of HSN code |
| Amount Demanded | ₹669.09 lakh (Tax) + ₹520.77 lakh (Interest) + ₹66.91 lakh (Penalty) |
| Financial Year | 2020-21 |
| Date of Order Receipt | January 30, 2025 |
Company's Response
FDC Limited has contested the penalty, stating that it is arbitrary, unjustified, and unsustainable in law. The company has announced that it will file an appeal with the appropriate appellate authority.Despite the significant demand amount, FDC has assured stakeholders that there is no material impact on the company’s financials or operations due to the order.
Regulatory Compliance
This disclosure was made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, in line with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.Strategic Outlook
While the legal proceedings will take their course, FDC Limited remains focused on business continuity and regulatory compliance. Investors will be keenly watching the outcome of the appeal and any further updates from the company regarding this tax demand.This development is expected to be closely monitored by market participants as it unfolds.