Usha Martin Faces ₹44 Crore GST Penalty; Plans to Contest Order

Kolkata, India – February 2, 2025 – Usha Martin Limited ([NSE: USHAMART], [BSE: 517146]) has received an order from the Additional Commissioner of CGST & C.Ex., Ranchi, imposing a penalty of ₹44.38 crore under the CGST Act, 2017, along with provisions of the IGST Act, 2017, and GST (Compensation to States Act), 2017.

Regulatory Action Details​

• Authority: Additional Commissioner Of CGST & C.Ex, Ranchi
• Penalty Amount: ₹44,38,72,605 (₹44.38 crore)
• Allegation: Wrongful availment, excess utilization, and claim of inadmissible Input Tax Credit (ITC), along with non-payment or short payment of GST.
• Period Under Scrutiny: July 2017 – March 2022
• Order Received: February 1, 2025, at 04:12 PM IST via email.

Company’s Response & Financial Impact​

Despite the significant penalty, Usha Martin has stated that it does not foresee any financial or operational impact on its activities at this stage. The company strongly objects to the penalty and is preparing to contest the order before the appropriate appellate authorities within the stipulated time.

Investor Outlook​

While the penalty amount is substantial, Usha Martin's assertion that its operations remain unaffected may provide some reassurance to investors. The company’s next steps, particularly its appeal process, will be closely watched by stakeholders.