ARCL Organics Gets GST Show Cause Notice for ₹5.05 Cr

ARCL Organics Ltd has received a Show Cause Notice (SCN) dated September 30, 2026, from the GST Authority, West Bengal, pertaining to Financial Year 2022-23. The notice, issued under Section 73 of the WBGST/CGST/IGST Acts, alleges non-payment of tax on outward supply of taxable goods, specifically regarding the classification of its product "Aqua Strong Bond". The GST Authority proposes a total demand of ₹5,05,21,772/- (₹5.05 Crore), which includes tax of ₹2,77,88,607/-, interest of ₹1,99,54,307/-, and a penalty of ₹27,78,858/-. The company disputes the alleged classification, believing "Aqua Strong Bond" is correctly classified under HSN Code 2309. ARCL Organics is examining the SCN and plans to submit an appropriate response within the prescribed time, stating there is no immediate impact on its financial, operational, or other activities.