Plaza Wires Limited Receives ₹11.5 Crore GST Demand Order

New Delhi, February 3, 2025 – Plaza Wires Limited (NSE: PLAZACABLE, BSE: 544003) has disclosed that it has received a Goods and Services Tax (GST) Demand Order from the office of the Commissioner, Central GST & Central Excise Commissionerate, Shimla.

Key Details of the GST Demand Order​

The company has been issued a demand order amounting to ₹11.5 crore, which includes:

• Tax demand: ₹5.75 crore
• Penalty: ₹5.75 crore

Additionally, a penalty of ₹50,000 has been imposed on Mr. Sanjay Gupta, the Managing Director of the company, under Section 122(3)(a) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017, and the corresponding section of the HP GST Act, 2017.

Nature of Alleged Violation​

The GST demand order pertains to disallowed GST credits for the financial years 2019-20, 2020-21, and 2021-22, which resulted in the tax liability.

Impact on the Company​

Plaza Wires Limited has stated that, based on its assessment, the demand is not maintainable. The company is currently evaluating all possible options, including filing an appeal against the order. It further clarified that it does not expect any material impact on its financials, operations, or other business activities as a result of this notice.

Next Steps​

The company has received the demand order via email on February 2, 2025, and is in the process of determining its legal course of action.

Investors and stakeholders are advised to monitor further updates from the company regarding any appeals or resolutions related to this GST matter.