Noida, February 3, 2025 – India Glycols Limited (BSE: 500201, NSE: INDIAGLYCO) has disclosed an order from the Joint Commissioner, CGST, Noida, regarding the disallowance of Transitional Input Tax Credit (ITC) for FY 2017-18. The company intends to appeal the demand, which amounts to ₹1.92 crore in tax, along with an equal penalty.
Nature of Order: Disallowance of Transitional ITC and demand for recovery
Tax Demand: ₹1,92,12,510 along with applicable interest
Penalty Imposed: ₹1,92,12,510 under CGST/UPGST Act
India Glycols Limited stated that the matter pertains to a Show Cause Notice (SCN) for FY 2017-18, alleging wrongful availment of Transitional ITC. The company had submitted a detailed response, but the adjudicating authority did not fully consider it before passing the order.
Financial and Operational Impact
The total financial impact on the company includes:
Tax liability of ₹1.92 crore, subject to applicable interest.
Penalty of ₹1.92 crore, levied under CGST/UPGST provisions.
Despite the order, India Glycols Limited remains confident that the demand is not maintainable and plans to file an appeal against the ruling. The company believes that the Appellate Authority will overturn the demand for tax, interest, and penalty.
Next Steps
India Glycols Limited will initiate legal proceedings to challenge the GST order and expects a favorable resolutionfrom the appellate process. Investors and stakeholders are advised to monitor further updates regarding the appeal outcome.