Megastar Foods Receives GST Demand Notice of ₹1.82 Crore, Expects Favorable Outcome.

Chandigarh, January 28, 2025 – Megastar Foods Limited (NSE: MEGASTAR, BSE: 541352) has disclosed that it has received a Goods & Services Tax (GST) demand notice (Form GST DRC 07) amounting to ₹1.82 crore from the Office of the Additional Commissioner, Central GST Sub-Commissionerate, Mohali.

Key Details of the GST Demand Notice​

• Amount Demanded:₹1,82,82,724, including:
  • CGST: ₹30,88,330
  • SGST: ₹30,88,330
  • IGST: ₹1,21,06,064
• Reason for Notice: Alleged non-payment of tax liability within prescribed due dates for taxable supplies of goods and services.
• Penalty: An additional penalty of ₹1.82 crore has been imposed under Section 74(1) of the CGST/PGST Act, 2017, along with interest under Section 50(1).
• Date of Receipt: January 27, 2025, via email at 10:58 AM.

Company’s Response & Financial Impact​

Megastar Foods has stated that the notice will not have any financial or operational impact at this stage. The company remains confident that the tax demand will be dropped at the next level of legal interpretation and plans to contest the claim based on prevailing tax laws.

Outlook for Investors​

While the demand is significant, Megastar Foods has assured stakeholders that the matter will be handled through legal recourse. Investors will closely monitor the company’s ability to defend the claim successfully.