Sundrop Brands Receives SGST Show Cause Notice for ₹26.37 Cr Demand

Sundrop Brands Ltd has received a show cause notice from the Deputy Commissioner (SGST), Ghaziabad, Uttar Pradesh, demanding ₹26,37,65,281.41, including a penalty of ₹2,39,78,661.93. The notice pertains to the scrutiny of GST returns for FY 2022-23. The company disputes the demand, stating that GST liability on deemed supplies, exports under LUT, and Reverse Charge Mechanism for the period has already been discharged. Sundrop Brands plans to file a detailed reply with documentary evidence within the prescribed timeline to contest the allegations and the stated demand. The company currently does not foresee any immediate financial, operational, or other implications.